USDA Section 502 Guaranteed Loan — Mississippi

USDA Section 502 Guaranteed Loan — Mississippi is a first mortgage for homebuyers in Mississippi, administered by USDA Rural Development, Rural Housing Service. The USDA Section 502 Guaranteed Loan Program (SFHGLP) helps approved lenders provide 100% financing to low- and moderate-income households purchasing in eligible rural areas of Mississippi. The program provides a 90% loan note guarantee to approved lenders, enabling no-money-down purchase, construction, rehabilitation, improvement, or relocation loans. Not restricted to first-time homebuyers. 100% financing — no down payment required. No USDA program minimum credit score. Closing costs may be financed into loan. 30-year fixed rate. 90% loan note guarantee reduces lender risk. Stackable with eligible down payment assistance programs. Funding comes from Federal — USDA Rural Housing Service Section 502(h); lenders hold loans with 90% USDA guarantee.

USDA Section 502 Guaranteed Loan — Mississippi is a first mortgage and is repaid under the terms set by USDA Rural Development, Rural Housing Service. 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.

USDA Section 502 Guaranteed Loan — Mississippi is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No USDA program minimum credit score; individual approved lenders may require 640+ for GUS automated approval per HB-1-3555 guidance. Residency requirement: Must personally occupy the dwelling as primary residence. Citizenship or immigration status: U.S. Citizen, U.S. non-citizen national, or Qualified Alien; must not be suspended or debarred from federal programs. Property must be in a USDA-eligible rural area (verify at eligibility site). Income includes all adult household members regardless of whether on the loan. Lenders may impose overlays including a minimum credit score (commonly 640 for GUS automated underwriting). 1% upfront guarantee fee and 0.35% annual fee apply (in lieu of PMI). Not available for investment properties, vacation homes, or income-producing properties.

USDA Section 502 Guaranteed Loan — Mississippi limits household income to 115% of the area median income, which varies by county and household size. Household income cannot exceed 115% of area median household income. Base 2026 standard limit: $119,850 for 1–4 person households; $158,250 for 5–8 person households in most Mississippi counties. Limits vary by county. Verify at eligibility.sc.egov.usda.gov. 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.

USDA Section 502 Guaranteed Loan — Mississippi caps the purchase price as follows: No set maximum purchase price; loan amount based on appraised value and ability to repay. Eligible property types include Single Family, Townhouse, Condo, PUD, Modular, and Manufactured. New construction is eligible. Manufactured homes are eligible.

USDA Section 502 Guaranteed Loan — Mississippi serves homebuyers purchasing anywhere in Mississippi. The program targets specific areas: Property must be in a USDA-eligible rural area as defined by USDA. Many Mississippi counties and rural communities qualify. Larger urban cores (Jackson, Gulfport, Hattiesburg) generally not eligible. Verify each address at USDA eligibility site.

Applications for USDA Section 502 Guaranteed Loan — Mississippi go through USDA Rural Development, Rural Housing Service, which publishes the current terms and the application steps on its own site. Funds are reserved through Applications accepted on a rolling basis Oct 1–Sep 30 through USDA-approved lenders via Guaranteed Underwriting System (GUS). Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.