Rural Development 502 Loan

Apply for a USDA Rural Development 502 Direct Mortgage Loan

What Can 502 Do For You?

No down payment required
Alternative credit analysis
Interest rates as low as 1%
Payment assistance available
Affordable monthly payments
No monthly private mortgage insurance premium charge (PMI)
Fixed interest rate terms of 33 or 38 years.

502 Home Ownership Loans Through Northern Homes CDC

Through a new partnership with USDA Rural Development, Northern Homes CDC is now offering this special mortgage product exclusively to eligible homebuyers in our service area.

Getting a 502 loan provides an opportunity to own your home and build equity for the future. We offer financing options for customers with fixed incomes, those who are self-employed, and other local employees.

Rural Housing 502 Direct Loans are loans that are directly funded by the Federal Government. Mortgage payments are based on the household’s adjusted income.

Family Size	1-4	5-8
Antrim	$49,300	$65,100
Charlevoix	$52,300	$69,050
Cheboygan	$48,900	$64,550
Crawford	$48,900	$64,550
Emmet	$54,400	$71,800
Kalkaska	$48,900	$64,550
Ogemaw	$48,900	$64,550
Oscoda	$48,900	$64,500
Otsego	$49,300	$65,100
Presque Isle	$48,900	$64,550
Roscommon	$48,900	$64,550

Must not own adequate housing.
Unable to secure credit from conventional resources.
U.S. Citizen or qualified alien status.
Must occupy the dwelling as your primary residence.
Must have stable and dependable income.
Must show repayment to meet all obligations. Ratios cannot exceed a PITI 29%/33% and Total Debt 41%.
Must have acceptable credit history.
Must have household income that does not exceed the low income guidelines established for the county. Please refer to the income limits.
Have the legal capacity to incur loan.

Other restrictions and fees may apply.
For other county income guidelines, please call Northern Homes CDC at (231) 582-6436

Property requirements include, but are not limited to the following guidelines:

Must be in an eligible rural area.
Must be considered modest for the area, 2000 square feet or less.
Must not be income producing, no in-ground swimming pool, no farm structures and lots cannot be sub-divided.
CANNOT finance used manufactured housing; however, a new manufactured home provided by an approved dealer contractor is allowable; other restrictions may apply.
Property must have access to its own water & waste utilities and located on a publicly maintained road.
Value of property cannot exceed the Maximum Area Loan Limit Guideline.

Property Requirements

Maximum Property Market Value

Antrim	$285,000
Charlevoix	$285,000
Cheboygan	$285,000
Crawford	$285,000
Emmet	$285,000
Kalkaska	$285,000
Ogemaw	$285,000
Oscoda	$285,000
Otsego	$285,000
Presque Isle	$285,000
Roscommon	$285,000

Other restrictions and fees may apply.

For other county property guidelines, please call Northern Homes CDC at (231) 582-6436

Typical fees applicants are responsible for include: application fee, inspection fee, required repairs (major repairs may be included in loan contingent upon appraisal), first year homeowners insurance and closing fees. Gift money and Sellers Concessions are acceptable and may be used towards closing costs. Other fees and restrictions may apply.

Thank you so much for your wonderful information and energy at our recent Educational Breakfast Series, "Living on a Fixed Income!" Please know how much we appreciated your gift of tie and knowledge! We look forward to future projects!

K. Korson and the entire OCCOA Staff