Section 502 Direct Home Loans

The Section 502 Direct program provides loans in eligible rural areas for low and very low income households to purchase or repair their existing home. Applicants may obtain 100-percent financing to purchase an existing dwelling, purchase a site and have a dwelling constructed, or purchase a newly constructed home. Household income must be within the limit for the area, and home purchase cannot exceed the loan limit for the area. Payments are based on household income. Homes must be owner-occupied.

Current Program Timelines

Due to budget cuts and staff reductions, our waiting list for the Section 502 Direct Home Loan program is currently: 12 to 21 months. Applications on the wait list date back to March 2010.

How to Apply for a Section 502 Direct Loan in Oregon:

Step 1	To see if you prequalify for a Section 502 Direct Loan, we strongly encourage you to go through a pre-qualification process. To do so, review the following information: Prequalification Cover Sheets (PDF, 92 KB) Next, complete, sign and e-mail the following two forms to direct.prequals@or.usda.gov: Prequalification Form (PDF, 23 KB) Authorization to Release Information* Form RD 3550-1 (PDF, 97 KB) *Required for all adult (18 years and older) members of the household.
Step 2	If you decide to move forward and submit a full application, complete, sign and e-mail the following two forms to direct.apps@or.usda.gov: Uniform Residential Loan Application Form RD 410-4 (PDF, 488 KB) Authorization to Release Information* Form RD 3550-1 (PDF, 97 KB) Required for all adult (18 years and older) members of the household. Credit Score Disclosure (PDF, 42 KB) E-mail is preferred*, however, if needed, you may fax the materials to (503) 414-3394 or send/deliver your application materials to the office in your part of the state:
	For home loans east of the Cascade Mountains (see map above), send applications to: USDA Rural Development Pendleton Area Office 200 SE Hailey Ave Suite 105 Pendleton, OR 97801
	For home loans in counties west of the Cascade Mountains (see map above), send applications to: USDA Rural Development Tangent Area Office 31978 N Lake Creek Dr Tangent, OR 97389
What happens next	After you submit a complete application package, USDA Rural Development will complete pre-eligibility screening of your application and send you a letter to confirm your preliminary eligibility status and provide an estimated timeline for full processing. All home loan applications submitted in Oregon are processed in the order they were received. As your application moves through the process, your assigned loan specialist will maintain direct communication with you.

Where to Direct Your Questions (Oregon applicants only):

If you have questions about applying for the Section 502 Direct Home Loan program or about an application that is in process within the State of Oregon, you may contact us at: