USDA Section 502 Guaranteed Loan Program (Rhode Island)

USDA Section 502 Guaranteed Loan Program (Rhode Island) is a first mortgage for homebuyers in Rhode Island, administered by USDA Rural Development, Rural Housing Service (Single Family Housing Guaranteed Loan Program), through approved lenders. The USDA Section 502 Guaranteed Loan Program helps approved private lenders provide low- and moderate-income Rhode Island households 100% financing to buy, build, rehabilitate, improve, or relocate a modest home in an eligible rural area as a primary residence. USDA guarantees 90% of the loan note to reduce lender risk, enabling no-money-down 30-year fixed-rate mortgages. Household income may not exceed 115% of area median income, and there is no program credit-score minimum. 100% financing - no down payment required. 30-year fixed rate. No program minimum credit score. Closing costs may be financed where value supports. Wide property eligibility including condos, modular, and manufactured homes. Single-close construction-to-permanent option available. Funding comes from USDA provides a 90% loan note guarantee to approved private lenders making 100% financing loans.

USDA Section 502 Guaranteed Loan Program (Rhode Island) is a first mortgage and is repaid under the terms set by USDA Rural Development, Rural Housing Service (Single Family Housing Guaranteed Loan Program), through approved lenders. 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 Program (Rhode Island) is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No program credit score requirement; applicant must demonstrate willingness and ability to manage debt (lender overlays may apply). Residency requirement: Property must be in an eligible USDA-defined rural area of Rhode Island (verify address via the USDA Eligibility Site) and occupied as the primary residence. Citizenship or immigration status: U.S. citizen, U.S. non-citizen national, or Qualified Alien. Property must be in a USDA-eligible rural area (verify by address at the USDA Eligibility Site). Income may not exceed 115% of area median income. USDA upfront and annual guarantee fees apply. Rates set by individual lenders. NOTE: income_limit_amount uses the 2026 national baseline 4-person figure ($119,850); RI county-specific limits may be higher and should be verified via the USDA income-eligibility lookup.

USDA Section 502 Guaranteed Loan Program (Rhode Island) limits household income to 115% of the area median income, which varies by county and household size. Household income may not exceed 115% of area median income. The 2026 national baseline moderate-income limit is $119,850 for households of 1-4 persons and $158,250 for 5-8 persons; RI county-specific limits may be higher and should be verified via the USDA Income Eligibility lookup (eligibility.sc.egov.usda.gov). NOTE: income_limit_amount reflects the 2026 national baseline 4-person figure; RI-specific county figures may differ. 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 Program (Rhode Island) caps the purchase price as follows: No set purchase-price or acreage limit; property must be modest, non-income-producing, and in an eligible rural area. Eligible property types include single_family, condo, townhouse, manufactured, and modular. New construction is eligible. Manufactured homes are eligible.

USDA Section 502 Guaranteed Loan Program (Rhode Island) serves homebuyers purchasing anywhere in Rhode Island.

Applications for USDA Section 502 Guaranteed Loan Program (Rhode Island) go through USDA Rural Development, Rural Housing Service (Single Family Housing Guaranteed Loan Program), through approved lenders, which publishes the current terms and the application steps on its own site. Funds are reserved through Applications accepted on an ongoing basis from approved lenders October 1 - September 30; borrower applies through a USDA-approved lender. 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.