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USDA Section 502 Direct Single Family Housing Loan (Utah)

USDA Rural Development - Rural Housing Service (Utah State Office) · Statewide, Utah

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Assistance

100%

Of the purchase price, as the program sets it

What is USDA Section 502 Direct Single Family Housing Loan (Utah)?

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

  • The USDA Section 502 Direct Home Loan Program provides up to 100% financing (typically no down payment) to low- and very-low-income applicants to buy, build, repair, renovate, or relocate a home in eligible rural Utah areas. USDA provides 'payment assistance,' a subsidy that can lower the effective rate to as low as 1% based on adjusted family income. Administered directly by USDA RD; applications accepted year-round.
  • Up to 100% financing, typically no down payment.
  • Payment-assistance subsidy reduces effective rate to as low as 1%.
  • 33-year term (38 yrs for very-low-income).
  • This is a federal program, so it is available beyond a single state or city.

How much assistance does it provide?

USDA Section 502 Direct Single Family Housing Loan (Utah) provides assistance worth 100% of the purchase price, as set by the program.

  • Award tiers: Payment assistance determined by adjusted family income; very-low-income may get a 38-year term.
  • Buyer contribution: No down payment typically required; assets above program limits may require partial application.
  • Amounts are the program's published maximums, not an offer — USDA Rural Development - Rural Housing Service (Utah State Office) determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by Portion of payment subsidy subject to recapture when title transfers or borrower no longer occupies the dwelling.
  • 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 Direct Single Family Housing Loan (Utah) is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • DRAFT (dpa-gap-finder 2026-06-14): pending review. Loan term: Up to 33 years (38 years for very-low-income applicants unable to afford the 33-year term).. Adjusted income at/below the applicable low-income limit; inability to obtain other financing on reasonable terms; primary-residence occupancy; eligible-rural-area property under the area loan limit; citizen/eligible-noncitizen. Effective June 1, 2026 base rate 5.125% (reducible to as low as 1% with payment assistance). First mortgage itself rather than a subordinate DPA. Could not confirm: min credit score (no hard score), specific Utah county income/area loan limits, education requirement.

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

USDA Section 502 Direct Single Family Housing Loan (Utah) sets its income limit as follows: Adjusted income at/below the applicable area low-income limit; very-low- and low-income tiers apply. Limits vary by county/household size per USDA Direct Loan income-limit map.

  • 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 Direct Single Family Housing Loan (Utah) caps the purchase price as follows: Property market value must not exceed the USDA area loan limit for the county.

  • Eligible property types include Single Family.
  • New construction is eligible.

Where does it apply?

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

How do you apply?

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

  1. Contact USDA Rural Development - Rural Housing Service (Utah State Office) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  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.

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