Real Estate Blog

USDA mortgage program helps low-income homebuyers

The U.S. Department of Agriculture Rural Development has a mortgage program to help low-income homebuyers in rural California communities purchase a home.

The loans, also known as the Section 502 Direct Loan Program, provides buyers with a subsidy to reduce the mortgage payment for a short time. There is typically no down payment and no mortgage insurance with interest rates as low as 1 percent for eligible buyers, the department said.

Homes must be modest in size, around 1,800 square feet or smaller, and located in communities of 35,000 people or less. Loan limits will vary by location and income limits.

“This is a great program that helps folks who have good credit and a steady income, but can’t get traditional financing,” program director Ron Tackett said in a news release.

Since 2009, the department has helped more than 3,300 homebuyers in rural California buy a home through the loan program.

U.S. Department of Agriculture Rural Development

For more information, visit or call the Fresno office at (559) 276-7494.