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Section 502 Guaranteed Home Loans
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Current Program Timelines |
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Due to budget cuts and staff
reductions, guaranteed housing lenders are advised that
turn times for processing guarantee requests through the
Section 502 program are currently
7 to 10 business days.
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Updated 11-2-2012
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The mission of USDA Rural Development Single Family Housing
Guaranteed Loan Program is to help low- to moderate-income rural
homebuyers achieve their dream of homeownership.
Rural Development partners with approved local lenders to extend
fixed-rate, 100-percent financing opportunities to eligible rural
individuals and families for the purchase of safe and sanitary
dwellings. The guarantee eliminates the need for a down payment and
private mortgage insurance. Guaranteed loans have assisted thousands
of homeowners to purchase a home with affordable interest rates and
loan terms. Applicants must purchase a home within
eligible rural areas and have a
household
income that does not exceed the established
limits where the home is located.
Homebuyer Information:
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Applicant Eligibility:
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Applicants for loans may have
an income of up to 115% of the median income for the area.
Click here to visit the online
income eligibility tool.
Families must be without adequate housing, but be able to
afford the mortgage payments, including taxes and insurance.
In addition, applicants must have reasonable credit
histories.
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Property
Eligibility:
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The home to be purchased must
be located in an
eligible rural area.
Properties with income producing potential, as well as with
non-essential buildings (i.e. guest houses, horse corral,
barns, etc.) are ineligible for a USDA loan guarantee. For
more information about prohibited loan purposes, please see
RD Instruction 1980-D
or review the following presentation
Eligible Versus Prohibited Loan
Purposes and Buildings Not Essential for Rural Housing
Purposes version 2 (PPT,
2.7 MB).
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How to Apply: |
1. Contact a lender of
your choice
(bank, credit union, etc.) willing to make your loan with a
USDA guarantee. It is always a good idea to contact your existing bank or credit
union to learn if they are willing to participate in the
USDA loan guarantee. Or, you may want to locate a lender
currently participating as an approved lender for the Section 502
Loan Guarantee program in Oregon. Lenders not not currently
working through the program may contact USDA to become an approved lender. USDA does not
endorse or promote any lender or their services.
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2. Work directly with your lender to
complete your loan application package. Your lender will
submit required information to USDA Rural Development on
your behalf. |
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of Page
Guaranteed Lender
Information for Oregon:
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of Page
Helpful
Links and Fact Sheets:
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of Page
<Go Back to Rural Development Oregon -
Single Family Housing Programs
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