Single Family Housing Guaranteed Loan Program in California


Attention Lenders: Current turn time is 1-2 business days for GUS ACCEPT submissions and 2-3 business days for REFER and manual underwrite submissions.

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.

Homebuyers interested in applying for the Single Family Housing Guaranteed Loan program, or with questions about the program should contact one of the approved lenders in California directly.

State Office:

Main Phone Number: (530) 792-5800 extension 1

USDA Rural Development
Attn: Single Family Housing
430 G St, Agency 4169
Davis, CA 95616

Stephen Nnodim, Acting Single Family Housing Program Director
(530) 792-5830

Annette Joyer, SFH Specialist
(916) 798-1245

Debbie Morris, SFH Specialist
(530) 792-5820

Tamye Binning, SFH Technician
(530) 792-5823

Kallii Lane, SFH Technician
(530) 792-5802

Lenders: Guaranteed loan activity in California is processed through four offices throughout the state, and is divided by lender. All loan activity for a specific lender, regardless of the subject property's location, is processed through an assigned office. Below are contacts for each processing office, as well as a list of lenders served by that office.  If not listed below, lenders should submit inquiries to

Redding Office:
Ed Amen, Area Specialist
(530) 691-5850
Lenders Served:

  • Academy Mortgage Corporation
  • American Pacific Mortgage Corp.
  • Fairway Independent Mortgage Corporation
  • First Nations Home Finance
  • Golden Empire Mortgage
  • Guild Mortgage Company
  • Mason-McDuffie Mortgage Corp.
  • Megastar Financial
  • MMC Lending
  • Oaktree Funding Corp.
  • Paramount Residential Mortgage Group, Inc.
  • Perl Mortgage
  • Platinum Home Mortgage Corp.
  • Plaza Home Mortgage, Inc.
  • RANLIFE, Inc.

Salinas Office: 
Violet Gomes, Area Specialist
(831) 975-7739

Lupe Benavides, Area Specialist
(831) 975-7738
Lenders Served:

  • AFN dba MGM Mortgage
  • Finance of America Mortgage
  • Loan LLC
  • PrimeLending, A Plainscapital Co.
  • United Shores Financial Services, LLC

Visalia Office:
Nellie Nunez, Area Specialist
(559) 754-3153

Maricela Gomez, Area Specialist
(559) 754-3157
Lenders Served:

  • Axia Financial, LLC
  • Castle & Cooke Mortgage, LLC
  • Commerce Home Mortgage
  • Country Club Mortgage
  • Evergreen Home Loans
  • Kings Mortgage Services, Inc.
  • Mountain West Financial
  • Primary Residential Mortgage, Inc.
  • Sierra Pacific Mortgage
  • Stearns Lending, LLC
  • Summit Funding, Inc.
  • Sun West Mortgage Company, Inc.
  • Wallick & Volk, Inc.
  • Wells Fargo Home Mortgage