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USDA Loan Packaging - Section 502 Direct Loan Program

NMCAA is now a certified USDA Loan Packager for the Section 502 Direct Loan program!


What is the Section 502 Direct Loan Program?

The USDA Section 502 Direct Loan Program allows low- and very-low-income applicants to obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability.

Applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.


  • No down payment requirement
  • No USDA funding fee
  • No monthly mortgage insurance
  • Property requirements apply
  • Household income and asset limits apply


Why use NMCAA as a loan packager?

NMCAA’s Budget/Housing Coaches are dedicated to helping you obtain a safe, affordable home that is right for your family! Our Homeownership Center staff will help you navigate the often lengthy and complicated application process and will support you along your journey to homeownership. Working with a loan packager, such as NMCAA, often leads to faster application reviews and approvals.

To find out more information call Allison Popa,

FMS Intake Specialist at (231) 346-2141.

This page last updated on 4/3/2020.