USDA 502 Pilot Program

new manufactured home financing program

  • <3.50% interest rate*, 100% loan-to-value, 30-year financing
  • No down payment
  • Available only for new EnergyStar manufactured homes in resident-owned or nonprofit-owned communities in rural Minnesota
  • Estimated monthly payment on $60,000 home: $290/month
  • Add lot rent, utilities, taxes, and homeowners insurance to estimate your total living expenses.

*Rate changes monthly based on market conditions. As of August 2017, the rate is 3.25%. Final monthly payment will depend on income, purchase price, and current program interest rate. 

Program Requirements

  • Home must be placed in a resident- or nonprofit-owned community and must be in rural area of 20,000 or fewer.
  • Applicants must currently not own a dwelling or be living currently living in a dwelling that is inadequate
  • Applicants must have adequate and reliable income (typically evidenced with two-year employment history with no gaps and present at current job for 6 to 12 months
  • Applicants must be U.S. citizen, permanent resident or qualified alien
  • Acceptable credit history (Streamlined processing if credit score of 640 or more)
  • All applicants must have three active credit lines open for last 12 months (and/or nontraditional credit, e.g. history of paying rent and/or utility payments)
  • 100% loan-to-value financing, including closing costs like appraisal fee, escrow deposit, homebuyer education fee - closing costs are $3,500 or less
  • Homebuyer education required for first-time homebuyers
  • Buyers must have incomes at or below 80% of county median income
  • Requires certain debt-to-income ratios to qualify
  • Qualified borrowers may be eligible for payment assistance to reduce monthly payments and enhance affordability.  Amount of assistance determined by adjusted family income

Download a program flyer. 

More program information can be found on the 502 Direct Home Loan Program page of the USDA website.

Interested? Get a USDA 502 Direct application from your local USDA office:

USDA Regional Office – Worthington | 507-372-7783, x4
This location serves homeowners interested in living in Five Lakes Cooperative and Madelia Mobile Village Cooperative
 

USDA Regional Office – Faribault  | 507-332-7418, x4
This location serves homeowners interested in living in Sunrise Villa Cooperative in Cannon Falls and Hillcrest Community Cooperative in Clarks Grove
 

USDA Regional Office – Cambridge | 763-689-3354, x4
This location serves homeowners interested in living in Stonegate Cooperative in Lindstrom