USDA Section 502 Guaranteed Loan Program (Idaho)

What is USDA Section 502 Guaranteed Loan Program (Idaho)?

USDA Section 502 Guaranteed Loan Program (Idaho) is a first mortgage for homebuyers in Statewide, Idaho, administered by USDA Rural Development - Rural Housing Service (Idaho State Office), through approved lenders.

• The USDA Section 502 Guaranteed Loan Program assists USDA-approved lenders in providing low- and moderate-income households in eligible rural areas of Idaho the opportunity to buy, build, rehabilitate, improve, or relocate a primary residence with 100% financing and no money down for those who qualify. USDA provides a 90% loan note guarantee to the lender. The program is currently open with applications accepted year-round through approved lenders, and loans are offered as 30-year fixed-rate mortgages.
• 100% financing / no down payment for qualified buyers.
• Income limit up to 115% AMI.
• No minimum credit score set by program.
• 30-year fixed rate.
• Manufactured and modular homes eligible.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development loan guarantee (Housing Act of 1949, Section 502(h); 7 CFR Part 3555).

How much assistance does it provide?

USDA Section 502 Guaranteed Loan Program (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), through approved lenders determines any individual award.

Do you have to pay it back?

USDA Section 502 Guaranteed Loan Program (Idaho) is a first mortgage and is repaid under the terms set by USDA Rural Development - Rural Housing Service (Idaho State Office), through approved lenders.

• Repayment is triggered by Standard mortgage repayment; no subsidy recapture (guaranteed, not subsidized, loan).
• 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 Program (Idaho) is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Section 502 Guaranteed Loan Program (Idaho) limits household income to 115% of the area median income, which varies by county and household size.

• Applicant household income cannot exceed 115% of the area median household income; varies by county and household size per USDA Guaranteed 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 Guaranteed Loan Program (Idaho) can be used for Single Family, Condo, Townhouse, and Manufactured.

• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

USDA Section 502 Guaranteed Loan Program (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 Guaranteed Loan Program (Idaho) go through USDA Rural Development - Rural Housing Service (Idaho State Office), through approved lenders, 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), through approved lenders 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.