Section 502 loans are primarily used to help low income families or individuals purchase homes in rural areas. Funds can be used to buy, repair or build a home in an designated rural area (there are several approved areas in Pierce County).

A briefing on USDA Rural Loans:

Guaranteed Home Loans:

Rural families and individuals may be eligible to become homeowners with the help of a U.S. Department of Agriculture - Rural Development guaranteed loan. Sometimes good credit and a steady income are not enough to qualify at a mortgage lending center. A sizable down-payment may also be required. But when the Agency agrees to guarantee a loan, lending institutions can help buyers with 100% financing, while incurring little risk. Through the Guaranteed Rural Housing Loan Program, low and moderate income people can qualify for mortgages even without a down-payment.

Eligible Persons

Have an adequate and dependable income.

Must be a U.S. citizen or be legally admitted to the United States for permanent residence.

An adjusted annual household income that does not exceed the published limits for the county in which you purchase. The Rural Development office in your area can give you the income limits for your area. Income includes the total gross income of the applicant, co-applicant, and any other adult in the household.

A credit history that indicates a reasonable willingness to meet obligations as they become due.

Demonstrate repayment ability.

How to Apply

Loans are originated through an approved lender. For information regarding participating lenders, contact your nearest area office .

Homes that Qualify

Guaranteed loans can be made on either new or existing homes.

Plumbing, heating, water, waste disposal, and electricity must be certified as adequate and the dwelling must be free from termites and dry rot.

No restrictions exist on the size or design of the dwelling financed.

Must be a residence, not a farm.

Dwellings with in-ground swimming pools, are prohibited.

Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and, under certain conditions, towns and cities with less than 20,000 population. The Rural Development office in your area can detail eligible areas or provide a list of ineligible areas.

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Contact Becca Harris at 253-495-0192 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it