USDA Rural Development · Section 502 Direct · Tennessee
100% financing
for rural homeownership
The Section 502 Direct Home Loan is USDA Rural Development’s homeownership program for low- and very-low-income households buying in an eligible rural area. Eligible applicants can finance the full purchase price — no down payment — with a fixed interest rate and possible payment assistance.
Start the 100% financing pre-application
AGAPE FOUNDATION INC collects your pre-screen information, prepares the package with you, and forwards it to CRJSR@agape-intl.org for processing. USDA makes every eligibility determination. AGAPE is not a government agency and does not approve or deny loans.
The program
What Section 502 Direct does
Also known as the Section 502 Direct Loan Program, it helps low- and very-low-income applicants buy decent, safe and sanitary housing in eligible rural areas by providing payment assistance that increases the applicant’s repayment ability.
Fixed interest rate
The rate is set by USDA and does not change over the life of the loan.
33-year term
Loans are typically made for 33 years. A 38-year term may be available to very-low-income applicants who cannot afford a 33-year term.
Payment assistance
A type of subsidy that reduces the mortgage payment for a period of time. The amount is determined by the adjusted family income.
Loan limits
Certain loan limits apply based on your repayment ability. Borrowers can never borrow more than the applicable area loan limit in the county where the property is located, plus certain eligible costs.
Payment assistance is not permanent. Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when title transfers or the borrower no longer lives in the dwelling.
Qualification
Who may qualify
USDA considers a number of factors. At a minimum, applicants must have an adjusted income at or below the applicable low-income limit for the area, and must demonstrate the willingness and ability to repay debt.
- An acceptable credit history.
- A “low” household income, within the limit for your county and household size.
- U.S. citizenship, or meeting the eligible non-citizen requirements.
- Adequate repayment ability.
- At least three trade lines (credit sources) for at least the last 12 months.
- Without decent, safe and sanitary housing, or unable to obtain a loan from other resources on terms that can reasonably be expected to be met.
- Agreement to occupy the property as your principal residence.
- The legal capacity to incur a loan obligation, and not suspended or debarred from participation in federal programs.
- A property located in a Rural Development designated rural area, modest in size for the area, not designed for income-producing activities, and not valued above the applicable area loan limit.
Check your address first
Use the USDA Income and Property Eligibility site to confirm that your property address is in an eligible rural area: eligibility.sc.egov.usda.gov/eligibility — select the “Single Family Housing Direct” tab.
Some counties contain ineligible areas, including parts of Anderson, Blount, Bradley, Carter, Davidson, Hamblen, Hamilton, Hawkins, Knox, Madison, Maury, Putnam, Roane, Robertson, Rutherford, Shelby, Sullivan, Sumner, Washington, Williamson and Wilson counties. Visit the eligibility site to test the exact address.
Income limits
Tennessee county limits
Maximum adjusted household income for the Section 502 Direct program, by county and household size, as published by USDA Rural Development Tennessee. Your county limit depends on how many people live in the household.
| County | 1–4 people | 5–8 people |
|---|---|---|
| Anderson | $79,500 | $104,950 |
| Bedford | $62,800 | $82,900 |
| Benton | $60,500 | $79,900 |
| Bledsoe | $59,900 | $79,100 |
| Blount | $79,500 | $104,950 |
| Bradley | $66,400 | $87,650 |
| Campbell | $59,900 | $79,100 |
| Cannon | $91,850 | $121,250 |
| Carroll | $63,200 | $83,450 |
| Carter | $67,850 | $89,600 |
| Cheatham | $91,850 | $121,250 |
| Chester | $65,750 | $86,800 |
| Claiborne | $59,900 | $79,100 |
| Clay | $59,900 | $79,100 |
| Cocke | $59,900 | $79,100 |
| Coffee | $61,100 | $80,700 |
| Crockett | $63,900 | $84,350 |
| Cumberland | $60,500 | $79,900 |
| Davidson | $91,850 | $121,250 |
| Decatur | $59,900 | $79,100 |
| DeKalb | $59,900 | $79,100 |
| Dickson | $91,850 | $121,250 |
| Dyer | $60,500 | $79,900 |
| Fayette | $72,900 | $96,250 |
| Fentress | $59,900 | $79,100 |
| Franklin | $66,400 | $87,650 |
| Gibson | $61,600 | $81,350 |
| Giles | $68,300 | $90,200 |
| Grainger | $59,900 | $79,100 |
| Greene | $59,900 | $79,100 |
| Grundy | $59,900 | $79,100 |
| Hamblen | $60,500 | $79,900 |
| Hamilton | $76,400 | $100,850 |
| Hancock | $59,900 | $79,100 |
| Hardeman | $59,900 | $79,100 |
| Hardin | $59,900 | $79,100 |
| Hawkins | $61,350 | $81,000 |
| Haywood | $59,900 | $79,100 |
| Henderson | $6,200 | $81,850 |
| Henry | $59,900 | $79,100 |
| Hickman | $60,250 | $79,550 |
| Houston | $61,900 | $81,750 |
| Humphreys | $64,100 | $84,650 |
| Jackson | $60,150 | $79,400 |
| Jefferson | $60,500 | $79,900 |
| Johnson | $59,900 | $79,100 |
| Knox | $79,500 | $104,950 |
| Lake | $59,900 | $79,100 |
| Lauderdale | $59,900 | $79,100 |
| Lawrence | $60,500 | $79,900 |
| Lewis | $59,900 | $79,100 |
| Lincoln | $65,400 | $86,350 |
| Loudon | $79,500 | $104,950 |
| Macon | $62,100 | $82,000 |
| Madison | $60,250 | $79,550 |
| Marion | $76,400 | $100,850 |
| Marshall | $67,250 | $88,800 |
| Maury | $7,350 | $99,500 |
| McMinn | $62,250 | $82,200 |
| McNairy | $59,900 | $79,100 |
| Meigs | $62,400 | $82,400 |
| Monroe | $63,650 | $84,050 |
| Montgomery | $70,100 | $92,550 |
| Moore | $72,250 | $95,400 |
| Morgan | $61,600 | $81,300 |
| Obion | $60,500 | $79,900 |
| Overton | $60,500 | $79,900 |
| Perry | $59,900 | $79,100 |
| Pickett | $59,900 | $79,100 |
| Polk | $66,400 | $87,650 |
| Putnam | $63,750 | $84,150 |
| Rhea | $59,900 | $79,100 |
| Roane | $75,650 | $95,900 |
| Robertson | $91,850 | $121,250 |
| Rutherford | $91,850 | $121,250 |
| Scott | $59,900 | $79,100 |
| Sequatchie | $76,400 | $100,850 |
| Sevier | $64,000 | $84,500 |
| Shelby | $72,900 | $96,250 |
| Smith | $66,550 | $87,850 |
| Stewart | $65,700 | $86,700 |
| Sullivan | $61,350 | $81,000 |
| Sumner | $91,850 | $121,250 |
| Tipton | $72,900 | $96,250 |
| Trousdale | $91,850 | $121,250 |
| Unicoi | $67,850 | $89,600 |
| Union | $79,500 | $104,950 |
| Van Buren | $59,900 | $79,100 |
| Warren | $59,900 | $79,100 |
| Washington | $67,850 | $89,600 |
| Wayne | $59,900 | $79,100 |
| Weakley | $60,400 | $79,750 |
| White | $59,900 | $79,100 |
| Williamson | $91,850 | $121,250 |
| Wilson | $91,850 | $121,250 |
Reproduced from the USDA Rural Development Tennessee income limits, Rev. 6/18/2025. Two entries in the published USDA table appear to contain typographical errors (Maury County “$7,350” and Henderson County “$6,200” for 1–4 person households); the USDA eligibility site below is authoritative for your household.
What is needed from you
Four steps to a complete package
-
Complete the pre-screen in full
Use the online pre-application on this site, or complete the USDA worksheet in the package below. Every question matters: household members and their income, debts, assets, and the property county.
-
Every household member 18 or older signs a release
Each adult in the household must sign a separate copy of the Authorization to Release Information (Form RD 3550-1) so USDA can verify employment, income, bank balances, landlord references and credit.
-
Authorize anyone helping you
If a family member or real estate agent will obtain or supply information on your behalf, complete and sign the authorization naming them.
-
Return the package
Return the completed pre-screen and release documents by mail or email. Submit through this site and AGAPE FOUNDATION INC will assemble it with you and forward it to CRJSR@agape-intl.org. USDA Tennessee’s own intake is USDA – Tennessee Rural Development, SFH Intake, 441 Donelson Pike, Suite 310, Nashville, TN 37214, 615-783-1300, or SM.RD.TN.SFHDirect@usda.gov.
Processing delays are real
USDA Rural Development receives record interest in the 502 Direct program and receives its funding through appropriations by Congress. Tennessee Rural Development has advised applicants that, with reduced funding and a backlog of applications, estimated time frames for new application processing are 360+ days, and that pending applications are prioritised and processed according to Agency regulations for as long as funding remains available.
Start the pre-screen early, keep your documents current, and expect the review to take time. USDA’s own letter is included in the package below.
Documents
Download and read
Ready to begin?
100% financing pre-application
Complete the pre-screen online. It takes about 15 minutes, it is encrypted end to end, and AGAPE FOUNDATION INC reviews it with you before anything is submitted to USDA.
Questions? CRJSR@agape-intl.org