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Qualifications To Receive A USDA Section 502 Mortgage


The Spire

Single Family Housing Direct Home Loans, also known as Section 502 Direct Loans, are designed to assist low-income applicants in getting into safe and sanitary housing in rural areas. This program provides payment assistance to increase their ability to repay the mortgage. The amount of assistance is based on the applicant’s income and is adjusted from time to time.

This program is designed to assist applicants who:

  • Have no safe, decent, or sanitary housing
  • Plan to occupy the property as their primary residence
  • Meet requirements for citizenship and legal capacity to borrow money
  • Are unable to obtain a loan from other sources


The homes eligible for a Section 502 loan are generally smaller than 2000 square feet and are located in rural areas with populations of less than 35,000.

These mortgages usually have the following terms:

  • No down payment or a very small down payment
  • Fixed-rate loans with interest rates around 1%
  • Payback period of 33-38 years


These details tend to change and vary by location. Contact your local lender to see if you qualify for a USDA Section 502 loan.

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.