Rural Housing Direct Loan (Section 502 Direct)

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.


Changes to Housing Eligible Areas:

Changes to housing eligible areas based on 2010 Census data that were scheduled to take effect on October 1, 2014, due to “rural in character” criteria have been postponed until October 1, 2015, by request of the Secretary. Complete applications received before October 1, 2015, will continue to use rural area definitions based on 2010 Census data.


Current program timelines:

There is currently no waiting period for the Section 502 Direct Program. Applications will be processed on a first-come, first-served basis. (Updated 7/10/2014.)


Centralized submission and processing for SFH Guaranteed and Direct home loan applications in Oregon:

USDA Rural Development in Oregon has centralized our Direct and Guaranteed Section 502 SFH programs in order to maximize efficiencies, improve service, and reduce processing times. All applications from around the state are now submitted through a centralized process, rather than through local offices. For application information and contacts, please refer to the appropriate program web page: Section 502 Guaranteed Home Loan OR the Section 502 Direct Home Loan.


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

Step 1 - Prequalify

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:


Next, complete, sign and e-mail the following two forms to

Step 2 - Complete Your Application Materials

If you decide to move forward and submit a full application, complete and sign the following forms:

  1. Uniform Residential Loan Application Form RD 410-4 (PDF, 488 KB)
  2. If you did not complete the prequalification process above, you must at this time submit the Authorization to Release Information* Form RD 3550-1 (PDF, 97 KB) *Required for all adult (18 years and older) members of the household.
  3. Credit Score Disclosure (PDF, 10 KB)

Step 3 - Submit Your Application Materials

E-mail the above forms to

E-mail is preferred, however, if needed, you may fax the materials to (855) 824-6182 or send/deliver your application materials to the office in either Pendleton or Tangent:

Oregon map

For home loans in counties east of the Cascade Mountains/Hwy 97 (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/Hwy 97 (see green portion of the 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:

Phone: 866-923-5626 extension 2

If you have questions about an existing Section 502 Direct Home Loan, please contact USDA Rural Development's Customer Service Center:

General account questions: 800-414-1226
Counseling for borrowers with delinquent loans or who need other servicing options: 800-793-8861

Helpful Links and Fact Sheets


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Click here to sign up for Oregon "Single Family Housing Program Notices" and other e-mail alerts from USDA Rural Development. 



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