USDA Section 502 Guaranteed Loan - Rural California

What is USDA Section 502 Guaranteed Loan - Rural California?

USDA Section 502 Guaranteed Loan - Rural California is a first mortgage for homebuyers in California.

• 100% financing (no down payment) for eligible rural homebuyers in California. Available in rural areas of many CA counties including Plumas, Lassen, Modoc, Sutter, Yuba, Glenn, Colusa, Imperial, and more. 2026 income limit: $121,900 (1-4 persons), $160,950 (5+ persons).
• Up to 100.0% of purchase price in assistance.
• non-repayable grant.
• Funding comes from Federal USDA.

How much assistance does it provide?

USDA Section 502 Guaranteed Loan - Rural California provides assistance worth 100% of the purchase price, as set by the program.

• The program asks buyers to contribute 0% (USDA no down payment required).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

USDA Section 502 Guaranteed Loan - Rural California is a first mortgage and is repaid under the terms set by the administering agency.

• Repayment is triggered by Recapture if sold within 9 years.
• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

USDA Section 502 Guaranteed Loan - Rural California is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Section 502 Guaranteed Loan - Rural California limits household income to 115% of the area median income, which varies by county and household size.

• USDA Section 502 income limit is 115% of area median income and varies by county.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

USDA Section 502 Guaranteed Loan - Rural California caps the purchase price as follows: Contact program for current purchase price limits.

• Eligible property types include Single-family residence in USDA-eligible rural area.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

USDA Section 502 Guaranteed Loan - Rural California serves buyers purchasing anywhere in California.

How do you apply?

Applications for USDA Section 502 Guaranteed Loan - Rural California go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved through Contact provider directly; subject to funding availability, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.