USDA Single Family Housing Direct Home Loan (Section 502 Direct) - Nevada

What is USDA Single Family Housing Direct Home Loan (Section 502 Direct) - Nevada?

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

• The USDA Section 502 Direct Home Loan provides 100% financing (no down payment) to low- and very-low-income buyers purchasing in eligible rural areas of Nevada. A payment-assistance subsidy temporarily reduces the monthly payment, lowering the effective interest rate to as little as 1% based on adjusted family income. Closing costs and eligible repairs can be financed into the loan. The subsidy is subject to recapture when the home is sold or no longer occupied.
• 100% financing, no down payment.
• Payment-assistance subsidy lowers effective rate to as low as 1%.
• Closing costs and repairs may be rolled into the loan.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development, Section 502 Direct Loan Program.

Do you have to pay it back?

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

• Repayment is triggered by Payment-assistance subsidy subject to recapture: all or a portion repaid when title transfers or the borrower no longer occupies the home.
• 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 Loan (Section 502 Direct) - Nevada is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Single Family Housing Direct Home Loan (Section 502 Direct) - Nevada sets its income limit as follows: Adjusted household income at or below the applicable low/very-low income limit for the area (varies by county and household size).

• 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.

Where does it apply?

USDA Single Family Housing Direct Home Loan (Section 502 Direct) - Nevada is a federal program, so it is not limited to Nevada.

How do you apply?

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

1. 1

   Contact USDA Rural Development - Nevada 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.