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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.