Mortgage Resources

USDA Single Family Guaranteed Loan Program

What is This Program? This program has been created to help approved lenders in providing low and moderate income households the possibility to own adequate, modest, safe, and clean houses as their primary residence in eligible rural areas. This program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home buyers. Sometimes called a “Rural Housing Loan” or a “Section 502” loan, there are a number of exurban and suburban neighborhoods nationwide in which USDA can be used. You may be surprised to know that a large number of Colorado counties have properties that fit the USDA’s requirements, including areas near Aurora, Denver, Boulder, Colorado Springs and Greeley. Has coming up with a down payment been a problem in the past and kept you from purchasing a house fret no more?

Who may be Eligible for this Program. rural housing photo

  • Meet Income-Eligibility. Find out at
  • Find out if your dream home is in an eligible area
  • Agree to personally be occupying the residence as your primary residence.
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have a legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner.
  • Purchase a property that meets all program criteria

Benefits at a Glance:

  • No down payments
  • Competitive
  • 100% Financing
  • Eligibility requirements cater to low to average income borrowers

More Key Information:

  • No down payments, once qualified you have the option to pay nothing out of pocket for a down payment.
  • Flexible credit guidelines.  You are still required to submit your credit report, but the USDA is far more lenient in what is considered to be acceptable.
  • No maximum purchase price.  NO, there is no limit on the purchase price as long as the lender determines you are able to make the payments.
  • 100% Financing.  In case “no down payment” hasn’t given it away, the U.S. government will finance 100% percent of your home once you are deemed eligible.
  • Many property types included.  If your home is new, previously owned, modular, planned unit development, a condo, or a manufactured… it is eligible.