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.
- 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
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 – 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