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USDA Section 502 Direct Loan

U.S. Department of Agriculture

0% down, payment assistance subsidy can reduce rate to 1%

Overview

Direct USDA loan for low-income rural buyers — payment subsidies can drop your effective rate as low as 1%.

Detailed requirements

Low to very low income (≤80% AMI). Property in USDA-eligible rural area. Subsidy assistance reduces effective interest rate based on income. No down payment. Direct loan from USDA, not a private lender.

Eligibility at a glance

Max income (% AMI)
80%
Owner-occupied required
Yes

Note: For low and very low income applicants in rural areas.

Ready to apply?

A free grant specialist walks you through eligibility and the official application in one short call.

Last verified 2026-09-02. Updated weekly. Always confirm details on the official program page before applying.