Low Interest Loans

As a certified packager, SWMHP offers applicants financing options through USDA’s 502 Direct Loan program. The 502 Direct loan program assists low and very low income households in purchasing safe and sanitary housing in rural areas. There is no down payment required and no monthly mortgage insurance payments.

Household Income and Asset Limits Apply

Program Highlights


  • Fixed interest rate with payment assistance*
  • No down payment
  • No mortgage insurance
  • 33 years to payback loan


  • Low and very low income households
  • Owner occupied primary residence
  • US citizen or permanent resident status
  • Willingness and ability to repay debt


  • Rural community
  • Meet the area loan limits*
  • Modest home
  • Cannot be a rental or business property

*Based on completed application and approval


List of Loan Application Packagers for Minnesota

Entity Name Contact Phone Email Website Counties Served
Southwest Minnesota Housing Partnership Joel Hollerich 507-836-1617 joelh@swmhp.org www.swmhp.org Statewide
Midwest Minnesota Community Development Corp Angie Schute 218-844-7023 aschute@mmcdc.com www.mmcdc.com Statewide
West Central Minnesota Community Action Joe Niehaus 320-304-3458 ext 7216 joen@wcmca.org www.wcmca.org Douglas, Grant, Traverse, Stevens & Pope
Marine Credit Union Foundation Majel Hein 608-791-1385 majel.hein@marinecu.com www.marinecu.com/marine-credit-union-foundation/ Southeast Minnesota
Consumer Credit Counseling Lora Kirschner 608-784-8380 lkirschner@cccsonline.org www.cccsonline.org Southeast Minnesota

Down Payment Assistance

Need help with closing costs? Looking for down payment assistance? The Southwest Minnesota Housing Partnership can provide low or no interest, deferred loans to cover closing costs or down payments. The Southwest Minnesota Housing Partnership provides, free, unbiased and confidential information. Email swmhp@swmhp.org to see if you may be eligible.