Got a Hard-to-approve Buyer? Put ’em to Pasture!


The United States Department of Agriculture offers a little-known financing program that can help lower-income families purchase homes. With funding up to 100% of the purchase price, mortgage payments would be based on the household’s adjusted gross income.

Commonly called Section 502 loans, the program offers some advantages for those who are unable to obtain conventional financing.

A few advantages include:

• 100% financing with no down payment
• No maximum purchase price
• Buyer’s closings costs may come from any source, including gift money
• Home repair and improvement monies can be included in the loan
• 30-year fixed rates
• No minimum credit score
• Mobile homes on land may be eligible

Typically, the properties would need to be in a rural area with modest prices for the area. In addition, the buyer’s income will need to be below the median income for the area. The link below will take you to the USDA Rural Development website to search for eligible properties by address. You can also find the maximum income allowed based on geography and family size. Go ahead and take a look. You might be surprised at how many homes can qualify just minutes outside of town.

Click here to search for eligible properties by address and to see income limitations>>

Click here for a brochure>>

By John Weeden
(CC) 2009
Redistribution permitted with credit to Author and


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