The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in New York aren’t the same thing as USDA Section 502 Guaranteed Loans in New York. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.

Can I get a USDA Direct Loan in New York?

USDA Loan RequirementsUSDA Direct Loans in New York are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of NY is $68,486, although that figure may vary from county to county. The maximum yearly income limits for New York USDA Direct Loan approval are listed below. Other than meeting New York USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:

  • You have no decent clean, safe, and sanitary housing presently.
  • You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
  • You must use this property for your primary residence.
  • You must possess the legal capacity to be able to contract a loan
  • You must meet citizenship or eligible noncitizen requirements.
  • You can’t be barred or suspended from participation in federal programs.

Additionally, the subject property must meet the following conditions:

  • Be a modestly sized home for that area.
  • Market value can’t be in excess of the areas applicable loan limit.
  • Can’t be designed for the production of income.

What areas in NY are eligible for USDA Direct Loans?

The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in NY here.

How much can I borrow with a USDA Direct Home Loan?

The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.

Are there other mortgage options with low down payment or no down payment in New York?

Yes, there may be other low down payment mortgage options, and no down payment mortgage options in New York besides USDA Direct Loans. You can begin by researching New York USDA Guaranteed Loans, New York FHA Loans, and New York VA Loans if you’re a veteran in NY or qualified family member. You may also want to look into helpful programs for down payment assistance in New York.

New York USDA Direct Loan Maximum Income Limits

1 Person
2 Person
3 Person
4 Person
5 Person
Albany-Schenectady-Troy, NY MSA $71,900$71,900 $71,900$71,900 $94,900
Allegany County, NY $52,950$52,950 $52,950$52,950 $69,900
Binghamton, NY MSA $56,400$56,400 $56,400$56,400 $74,450
Buffalo-Cheektowaga-Niagara Falls, NY MSA $61,500$61,500 $61,500$61,500 $81,200
Cattaraugus County, NY $52,950$52,950 $52,950$52,950 $69,900
Cayuga County, NY $56,250$56,250 $56,250$56,250 $74,250
Chautauqua County, NY $52,950$52,950 $52,950$52,950 $69,900
Chenango County, NY $52,950$52,950 $52,950$52,950 $69,900
Clinton County, NY $54,650$54,650 $54,650$54,650 $72,150
Columbia County, NY $63,100$63,100 $63,100$63,100 $83,300
Cortland County, NY $56,500$56,500 $56,500$56,500 $74,600
Delaware County, NY $52,950$52,950 $52,950$52,950 $69,900
Elmira, NY MSA $59,200$59,200 $59,200$59,200 $78,150
Essex County, NY $56,250$56,250 $56,250$56,250 $74,250
Franklin County, NY $52,950$52,950 $52,950$52,950 $69,900
Fulton County, NY $52,950$52,950 $52,950$52,950 $69,900
Genesee County, NY $56,700$56,700 $56,700$56,700 $74,850
Glens Falls, NY MSA $57,100$57,100 $57,100$57,100 $75,350
Greene County, NY $55,100$55,100 $55,100$55,100 $72,750
Hamilton County, NY $52,950$52,950 $52,950$52,950 $69,900
Ithaca, NY MSA $67,350$67,350 $67,350$67,350 $88,900
Kingston, NY MSA $66,650$66,650 $66,650$66,650 $88,000
Lewis County, NY $52,950$52,950 $52,950$52,950 $69,900
Montgomery County, NY $52,950$52,950 $52,950$52,950 $69,900
Nassau-Suffolk, NY HUD Metro FMR Area $88,950$88,950 $88,950$88,950 $117,400
New York, NY HUD Metro FMR Area $85,350$85,350 $85,350$85,350 $112,650
Otsego County, NY $53,350$53,350 $53,350$53,350 $70,400
Poughkeepsie-Newburgh-Middletown, NY HUD Metro FMR Area $75,500$75,500 $75,500$75,500 $99,650
Rochester, NY HUD Metro FMR Area $60,550$60,550 $60,550$60,550 $79,950
Rockland County, NY HUD Metro FMR Area $85,350$85,350 $85,350$85,350 $112,650
Schuyler County, NY $52,950$52,950 $52,950$52,950 $69,900
Seneca County, NY $55,200$55,200 $55,200$55,200 $72,850
St. Lawrence County, NY $52,950$52,950 $52,950$52,950 $69,900
Steuben County, NY $52,950$52,950 $52,950$52,950 $69,900
Sullivan County, NY $59,850$59,850 $59,850$59,850 $79,000
Syracuse, NY MSA $63,600$63,600 $63,600$63,600 $83,950
Utica-Rome, NY MSA $56,300$56,300 $56,300$56,300 $74,300
Watertown-Fort Drum, NY MSA $54,250$54,250 $54,250$54,250 $71,600
Westchester County, NY Statutory Exception Area $82,800$82,800 $82,800$82,800 $109,300
Wyoming County, NY $54,800$54,800 $54,800$54,800 $72,350
Yates County, NY HUD Metro FMR Area $55,300$55,300 $55,300$55,300 $73,000

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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