USDA Section 502 Direct Home Loan (Idaho)

What is USDA Section 502 Direct Home Loan (Idaho)?

USDA Section 502 Direct Home Loan (Idaho) is a first mortgage for homebuyers in Statewide, Idaho, administered by USDA Rural Development - Rural Housing Service (Idaho State Office).

• The USDA Section 502 Direct Home Loan Program helps low- and very-low-income applicants in eligible rural areas of Idaho obtain decent, safe, and sanitary housing through direct loans with payment assistance (a subsidy that temporarily reduces the payment, potentially to an effective rate as low as 1%). No down payment is typically required. The program is administered directly by USDA Rural Development and is currently open with applications accepted year-round.
• No down payment typically required.
• Payment subsidy can reduce effective rate to as low as 1%.
• Up to 33-38 year repayment term.
• Direct federal loan for low/very-low income rural buyers.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development direct loan appropriations (Housing Act of 1949, Section 502).

How much assistance does it provide?

USDA Section 502 Direct Home Loan (Idaho) provides assistance worth 100% of the purchase price, as set by the program.

• Amounts are the program's published maximums, not an offer — USDA Rural Development - Rural Housing Service (Idaho State Office) determines any individual award.

Do you have to pay it back?

USDA Section 502 Direct Home Loan (Idaho) is a first mortgage and is repaid under the terms set by USDA Rural Development - Rural Housing Service (Idaho State Office).

• Repayment is triggered by Payment subsidy (subsidy recapture) repaid in whole or part when title transfers or the borrower no longer occupies the dwelling.
• 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 Direct Home Loan (Idaho) is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Section 502 Direct Home Loan (Idaho) sets its income limit as follows: Applicant adjusted income must be at or below the applicable low-income limit for the area; very-low- and low-income applicants only. Varies by county and household size per USDA Direct income eligibility tables.

• The limit applies to total household income, not only the borrower’s.
• 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 Direct Home Loan (Idaho) caps the purchase price as follows: Property market value may not exceed the applicable area loan limit for the county.

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

USDA Section 502 Direct Home Loan (Idaho) is a federal program, so it is not limited to Idaho.

• The program targets specific areas: Property must be in a USDA-designated eligible rural area (verify via the USDA Eligibility site).

How do you apply?

Applications for USDA Section 502 Direct Home Loan (Idaho) go through USDA Rural Development - Rural Housing Service (Idaho State Office), which publishes the current terms and the application steps on its own site.

1. 1

   Contact USDA Rural Development - Rural Housing Service (Idaho State Office) to reserve funds

   Funds are reserved with the provider 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.