Single Family Housing Guaranteed Loan Program


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Please visit, SFH Guaranteed Lender 

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CARES Act: Important Servicing Notice for Current USDA Guaranteed Loan Holders

What does this program do? 

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!

Who may apply for this program?
Applicants must:

  • Meet income-eligibility (cannot exceed 115% of median household income)
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien

What is an eligible rural area?
Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. 

Why does Rural Development do this?

This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas. 

How do I apply?

Interested applicants can apply for a Section 502 Guaranteed Loan through USDA Rural Development’s network of approved lenders. 

Please view the list of nationally approved lenders.  However, this list is not inclusive of all our approved lenders.  We also have many state-based lenders approved to participate in our program.  We encourage you to contact your preferred lender and ask if they are an approved lender with USDA Rural Development. 

**Important** USDA Rural Development does not endorse any specific private sector lenders. We encourage you to comparison shop between lenders to find the best service and financial options available.  The approved lender you select will handle the entire loan application process, working with Rural Development staff to ensure your loan is guaranteed through the agency.

Current Borrowers

 Need to refinance your USDA Home Loan? Learn more!

What governs this program?

  • 7 CFR, Part 3555   - This part sets forth policies for the Single-Family Housing Guaranteed Loan Program (SFHGLP) administered by USDA Rural Development. It addresses the requirements of section 502(h) of the Housing Act of 1949, as amended, and includes policies regarding originating, servicing, holding and liquidating SFHGLP loans. 
  • HB-1-3555 - SFH Guaranteed Loan Program Technical Handbook.  This handbook provides Agency staff and lenders participating in the Single-Family Housing Guaranteed Loan Program with the tools needed to originate, underwrite, and service guaranteed loans efficiently and effectively. 

How may funds be used?
USDA Section 502 Guaranteed Loan funds may be used for:

  • New or existing residential property to be used as a permanent residence. Structures can be detached, attached, Condos, PUDs, Modular, or Manufactured. (Cannot be an income-producing property). Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling. No set acreage limits. 
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans – for existing USDA borrowers only
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment if the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

What are the credit requirements? 
The program has no credit score requirements, but applicants are expected to demonstrate a willingness and ability to handle and manage debt. 

What are the rates?
Interest rates vary and are determined by individual lenders.  We encourage you to comparison shop between lenders to find the best available option.

What are the terms?
USDA Section 502 Guaranteed Loans are offered at a 30year fixed rate only.

There are currently no events scheduled.

Interested applicants:
Applicants with questions should contact an approved lender.  

Please view the list of Nationally Approved Lenders.  However, this list is not inclusive of all our approved lenders.  We also have many state-based lenders approved to participate in our program.  We encourage you to contact your preferred lender and ask if they are an approved USDA Rural Development Guaranteed lender.  If you are seeking a Single Close Construction-to-Permanent Loan, this list contains current participating lenders.

Distressed Borrowers:
USDA Rural Development does not directly offer workout plans to homeowners in the Single-Family Housing Guaranteed Loan Program.  We urge any customer with a guaranteed loan seeking assistance to contact their mortgage servicing lender immediately to determine their eligibility for potential work out options.  Examples of work out options include but are not limited to:  Informal Forbearance, Special Forbearance, Loan Modification, Special Loan Servicing and Pre-Foreclosure Sale.  The customer service number for the servicing lender is typically provided on your mortgage statement or can be found at their online internet address.

Other RD Programs and Services:
The Guaranteed Loan Program is just one of several housing programs Rural Development offers to strengthen rural communities.  If the Guaranteed Loan Program is unable to meet your affordable housing needs, we encourage you to contact your local state RD office to learn more about our Single-Family Housing Direct Programs!