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USDA Single Family Housing Direct Home Loans

Georgia

Last verified
See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

What is USDA Single Family Housing Direct Home Loans?

USDA Single Family Housing Direct Home Loans is a first mortgage for homebuyers in Georgia.

  • The USDA Section 502 Direct Loan Program provides direct financing to low- and very-low-income borrowers to purchase, build, or repair a primary residence in eligible rural areas. The program offers 100% financing (no down payment required) plus payment assistance that reduces interest rates as low as 1% based on adjusted family income, making homeownership accessible for underserved rural households.
  • 100% financing available with no down payment required.
  • payment assistance can reduce the effective interest rate to as low as 1%.
  • fixed interest rate set by USDA Rural Development.
  • loan terms up to 33 years (38 years for very-low-income applicants).
  • closing costs may be financed into the loan if the appraised value exceeds the purchase price.
  • Funding comes from Federal.

Do you have to pay it back?

USDA Single Family Housing Direct Home Loans is a first mortgage and is repaid under the terms set by the administering agency.

  • The assistance is recorded in 1st Lien 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 Single Family Housing Direct Home Loans is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: No minimum credit score required; willingness and ability to repay evaluated via 24-month credit history
  • Property must be in USDA-eligible rural area (population under 35,000); Property size limit of 2,000 sq ft; No in-ground pools or income-producing features; Must be applicant's primary residence; Apply in person at local USDA Rural Development office; Cannot be combined with USDA Guaranteed loans; Payment assistance recaptured if borrower refinances or property is sold; Verify property eligibility at eligibility.sc.egov.usda.gov

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

USDA Single Family Housing Direct Home Loans limits household income to 80% of the area median income, which varies by county and household size.

  • Very low-income (below 50% AMI) and low-income (50-80% AMI) households. At least 40% of program funds must serve very low-income applicants. Income limits vary by county; verify current limits at eligibility.sc.egov.usda.gov.
  • 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 Single Family Housing Direct Home Loans can be used for Single Family and New Construction.

  • New construction is eligible.

Where does it apply?

USDA Single Family Housing Direct Home Loans serves buyers purchasing anywhere in Georgia.

How do you apply?

Applications for USDA Single Family Housing Direct Home Loans go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Contact the administering agency to reserve funds

    Funds are reserved through N/A, and are subject to availability.

  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.

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USDA Single Family Housing Direct Home Loans, explained

A short, free course on USDA Single Family Housing Direct Home Loans: what it is, who it is for, what the program sets and what your lender sets, where it applies and how to apply. Based on program data from August 2026. About ten minutes.

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