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USDA Rural Development
USDA Rural Development · Section 502 Guaranteed

Start your Guaranteed loan application

Section 502 Guaranteed loans are made by a USDA-approved private lender and backed by USDA. This flow helps you find a lender, pre-qualify, and hand off a clean file.

Program502 Direct502 Guaranteed504 Repair
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How Section 502 Guaranteed works

A USDA-approved private lender originates and services your loan. USDA guarantees a portion to the lender — that's what makes 0% down and competitive rates possible.

  1. 1
    Identify the property & check rural eligibility
    Guaranteed is only available on USDA rural-designated properties. We confirm against the Property Eligibility Map.
  2. 2
    Pre-qualify against USDA's underwriting guides
    115% AMI cap on household income, FICO ≥ 640 for most lenders, PITI ≤ 29%, total DTI ≤ 41%.
  3. 3
    Match with a USDA-approved lender
    USDA does not originate the loan. You pick a lender from the approved list licensed in your state.
  4. 4
    Lender intake & full application
    Lender pulls credit, collects W-2s / pay stubs / bank statements / tax returns, and orders the appraisal.
  5. 5
    GUS submission & USDA Conditional Commitment
    Lender submits to the Guaranteed Underwriting System (GUS). USDA reviews ACCEPT/ELIGIBLE files in ~1–3 business days.
  6. 6
    Closing & Loan Note Guarantee
    Lender closes and requests the Loan Note Guarantee from USDA within 30 days. 1.0% upfront fee (financed) + 0.35% annual fee.
Important — Guaranteed loans run through a lender, not USDA directly. If you're very-low-income (below the "low" band) and want a loan funded directly by USDA, try Section 502 Direct instead.