The Single Family 502 Guaranteed Program enables moderate income families to obtain financing from approved GRH lenders in eligible rural areas with no down payment. The 2.0% GRH fee may be financed. Closing costs and minor health and safety repairs can be included in the loan, up to the appraised value.

Qualifying Criteria:

The house you want to purchase or build must be located in an eligible rural area. To verify property eligibility please visit our website at:

The Household income can be no more than 115% of the median income established by HUD for the county where the property is located. The income must be sufficient to pay the house payment, taxes, insurance, and monthly debts. Adequate repayment ability is calculated using Principal, Interest, Taxes and Insurance (PITI ) not exceeding 29% of the gross monthly income and PITI plus monthly debts not exceeding 41% of the gross monthly income. To verify income eligibility, please visit the eligibility website link listed above.

The credit history for loan applicants must indicate a satisfactory repayment for debts and present housing expenses. The GRH approved lender will make this determination.

The property must be new, existing stick built, or modular and meet HUD guidelines. The property must also be owner occupied and not income producing or have investment potential. The borrower cannot own other real estate within the local commuting distance.

Loan Terms:

The loan is a 30-year fixed rate mortgage. The interest rate is negotiated between the GRH-approved lender and the applicant. There is a 2.0% GRH fee which may be financed and included in the loan amount. Lenders may charge normal and customary fees for their services.


Additional Information:

For more information, you may contact one of our locally approved lenders.  These lenders are based in Massachusetts, Connecticut, or Rhode Island.  You may also click here for a list of nationally approved lenders located throughout the U.S.