Last News about Sustainability and Ethical Brands Sustainable Living Home & Garden A REAL ESTATE LOAN WITH NO DOWN PAYMENT USDA 502 Review


As a new home buyer, it is a confusing process, when researching what types of loans that are available and will work for you. I am a veteran living in Carson City Nevada after being told that with my current income I would qualify for about $187,000 using my VA loan, which is 70,000 dollars shy of the amount needed to buy a home. Fortunately, I stumbled on a government-funded loan that I qualified for $287,000 this loan features no down payment and no mortgage insurance plus depending on income can offer a subsidy on the monthly payment. The loan made it possible to buy a home in rural Nevada. In general, the income limit is $55,000 for a family of four.

The USDA RD 502 direct loan is a federally funded loan and the process is difficult at first. To help you understand I recommend contacting your state office to get help with the application process. When calling for help ask for the Single Housing representative.

The loan promotes Rural areas generally with a population under 35,000, for help with determining property eligibility and with determining eligibility loan amount.

According to USDA RD, in general, to qualify you will have to show your ability to repay the loan and have a qualifying income based on the area you would like to live in and,

  • Be unable to get a loan from other resources on terms and conditions that can reasonably be expected to meet
  • Agree to occupy the property as your primary residence
  • Have the legal capacity to incur a loan obligation
  • Meet citizenship or eligible non-citizen requirements
  • Not be suspended or debarred from participation in federal programs

(Taylor, 2019)

The top features of the 502 direct loan are no down payment in most circumstances, and no mortgage insurance. Another excellent feature is the federal government will help you make your monthly payment allowing you to qualify for a higher loan amount. The subsidy however has a repayment feature, if you sell your home or you are no longer using the home as your primary residence.

One last note the loan process can take up to a hundred and twenty day from start to finish, contact your area USDA RD office for more up to the minute details.


Taylor, J. (2019, December 15). Single Family Housing Direct Home Loans. Retrieved from family housing direct home loans/nv.

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