USDA Section 502 Direct
USDA Section 502 Direct is a direct loan from usda (0% down, payment-subsidized) from USDA Rural Development. Coverage: Very-low/low income rural buyers. Up to 100% toward a home purchase. First-time buyer status is not required. Income limit: Very-low (≤50% AMI) and Low (50-80% AMI).
Up to 100%
Listed as open as of May 2026
Coverage: Very-low/low income rural buyers.
| First-time buyer | Not required |
|---|---|
| Income limit | Very-low (≤50% AMI) and Low (50-80% AMI) |
| Minimum credit score | 640 |
| Maximum DTI | 29% |
| Homebuyer education | Required |
| Occupations | Very-low/low income rural buyers |
| Property types | Modest housing; rural-eligible |
| Occupancy | Owner-occupied primary |
| Eligible loan products | USDA Direct |
| Sales price cap | USDA-set area limits |
| Repayment | 33-38 year term; payment subsidized to 24% of income (recapturable) |
| Stacking | Limited stacking |
| Notes | Payment subsidy is recapturable on sale. |
Cal has not re-checked this listing recently. Confirm the current terms with the program administrator before relying on them.
Provider: USDA Rural Development · program details at the provider’s site.
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