USDA Section 502 Guaranteed Home Loan
A mortgage from an approved private lender with a 90% USDA loan-note guarantee and up to 100% financing. The home must be a primary residence in an eligible rural area, and income limits apply.
- Down payment
- Up to 100% financing with no money down for qualifying borrowers through an approved lender.
- Credit context
- An approved lender underwrites the loan under USDA rules. The public overview does not publish a single universal minimum score; lender requirements may vary.
- Income rules
- For eligible low- and moderate-income households; USDA income limits vary by location and household.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
A mortgage from an approved private lender with a 90% USDA loan-note guarantee and up to 100% financing. The home must be a primary residence in an eligible rural area, and income limits apply.
These are situations worth exploring, not a qualification decision.
What could rule it out
- The issuing body does not set a single credit floor; each lender sets its own.
- Repeat buyers may use this loan type, subject to the other rules.