USDA Section 502 Direct Single Family Housing Home Loan (Wyoming)

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

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

• The Section 502 Direct Loan Program (USDA Rural Development) provides direct, 100%-financing home loans to low- and very-low-income applicants buying decent, safe, and sanitary housing in eligible rural areas of Wyoming. No down payment is typically required, and payment assistance (a subsidy that can lower the effective rate to as low as 1%) increases repayment ability. Applications are accepted year-round through the Wyoming State Office in Casper.
• No down payment typically required (up to 100% financing).
• Effective rate as low as 1% via payment assistance.
• Long terms (up to 33-38 years).
• Year-round applications.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from USDA Rural Development (federal; Housing Act of 1949 as amended; 7 CFR Part 3550; HB-1-3550).

Do you have to pay it back?

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

• Repayment is triggered by Payment-subsidy recapture: borrowers repay all or a portion of the payment subsidy received over the life of the loan when title transfers or the borrower no longer occupies the dwelling.
• The assistance is recorded in First mortgage 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 Section 502 Direct Single Family Housing Home Loan (Wyoming) is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Section 502 Direct Single Family Housing Home Loan (Wyoming) limits household income to 80% of the area median income, which varies by county and household size.

• Adjusted income at or below the applicable low-income limit for the area (low/very-low income); varies by county and household size - see USDA Direct income limit map.
• 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 Direct Single Family Housing Home Loan (Wyoming) caps the purchase price as follows: Property market value may not exceed the applicable 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 Home Loan (Wyoming) is a federal program, so it is not limited to Wyoming.

How do you apply?

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

1. 1

   Take a homebuyer education course

   Required by the program, through Applicant orientation required (Form RD 3550-23)..

2. 2

   Contact USDA Rural Development, Rural Housing Service - Wyoming State Office to reserve funds

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

3. 3

   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.