USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada

What is USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada is a first mortgage for homebuyers in Nevada, administered by USDA Rural Development, Rural Housing Service (Nevada State Office, Carson City).

• The USDA Section 502 Guaranteed Loan Program helps approved lenders offer 100% financed, no-money-down mortgages to low- and moderate-income households buying a primary residence in eligible rural areas of Nevada. USDA Rural Development backs the loan with a 90% note guarantee, reducing lender risk so borrowers can finance the home with no down payment. It is distinct from the Section 502 Direct program in that loans are originated and serviced by private approved lenders rather than directly by USDA. There is no set maximum purchase price and no credit score requirement, though income may not exceed 115% of area median.
• 100% financing with no down payment.
• 30-year fixed rate.
• No set maximum purchase price.
• No minimum credit score requirement.
• Closing costs/repairs can be financed.
• No limit on gift funds.
• Not restricted to first-time buyers.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development (Housing Act of 1949, Section 502(h)); loan guarantee program.

Do you have to pay it back?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada is a first mortgage and is repaid under the terms set by USDA Rural Development, Rural Housing Service (Nevada State Office, Carson City).

• 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.

Who qualifies?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada is open to buyers who will live in the home as their primary residence.

What are the income limits?

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

• Adjusted household income may not exceed 115% of the area median household income for the county where the home is located (per USDA 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 Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Nevada caps the purchase price as follows: No set maximum purchase price; loans based on repayment ability and appraised value; no acreage limit if common for the area.

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

Where does it apply?

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

How do you apply?

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

1. 1

   Contact USDA Rural Development, Rural Housing Service (Nevada State Office, Carson City) 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.