USDA Section 502 Guaranteed Loan Program (New Hampshire)

What is USDA Section 502 Guaranteed Loan Program (New Hampshire)?

USDA Section 502 Guaranteed Loan Program (New Hampshire) is a first mortgage for homebuyers in Statewide, New Hampshire, administered by USDA Rural Development, Rural Housing Service.

• The USDA Section 502 Guaranteed Loan Program helps approved private lenders offer low- and moderate-income rural households 100% financing (no money down) to buy, build, or rehabilitate a modest primary residence in an eligible rural area of New Hampshire. USDA provides a 90% loan note guarantee to the lender, reducing risk and enabling no-down-payment loans. Loans are 30-year fixed-rate, have no minimum credit score, and require household income at or below 115% of area median income.
• 100% financing with no down payment.
• 30-year fixed rate.
• No minimum credit score.
• Closing costs may be financed.
• Manufactured, modular, condo, and site-built homes eligible.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development provides a 90% loan note guarantee to approved lenders under Section 502(h) of the Housing Act of 1949.

How much assistance does it provide?

USDA Section 502 Guaranteed Loan Program (New Hampshire) 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 determines any individual award.

Do you have to pay it back?

USDA Section 502 Guaranteed Loan Program (New Hampshire) is a first mortgage and is repaid under the terms set by USDA Rural Development, Rural Housing Service.

• 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 (New Hampshire) 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 (New Hampshire) 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 median household income for the area; varies by county and household size (verify on USDA income eligibility tool).
• 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 (New Hampshire) caps the purchase price as follows: No set purchase price limit; loan amount governed by income limits and repayment ability.

• Eligible property types include Single Family, Condo, Townhouse, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

USDA Section 502 Guaranteed Loan Program (New Hampshire) is a federal program, so it is not limited to New Hampshire.

• The program targets specific areas: Eligibility limited to USDA-designated rural areas; address-specific eligibility determined via USDA's eligibility website.

How do you apply?

Applications for USDA Section 502 Guaranteed Loan Program (New Hampshire) go through USDA Rural Development, Rural Housing Service, which publishes the current terms and the application steps on its own site.

1. 1

   Contact USDA Rural Development, Rural Housing Service to reserve funds

   Funds are reserved through Applications accepted from approved lenders on an ongoing basis Oct 1 - Sep 30, 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.