Rural Housing Site Loans
Purpose: Rural Housing Site Loans are made to provide financing for the
purchase and development of housing sites for low- and moderate-income families.
Section 523 loans are made to acquire and develop sites only for housing to be
constructed by the self-help method. Section 524 loans are made to acquire and
develop sites for any low- or moderate-income family. Low income is defined as
between 50 and 80 percent of the area median income (AMI); the upper limit for
moderate income is $5,500 above the low-income limit.
Eligibility: Section 523 loans are limited to private or public nonprofit
organizations that will provide sites solely for self-help housing. Section 524
loans are made to private or public nonprofit organizations. Section 524 sites may
be sold to low- or moderate-income families utilizing HCFP or any other mortgage
financing program which serves the same eligible families.
Terms: Loans are for two years. Section 523 loans bear 3 percent interest. At
the discretion of the customer, Section 524 loans bear the market rate of interest
either at the time of approval or at the time of the loan closing.
Standards: The site development standards and policies in RD Instructions 1924-A
and 1924-C apply.
Basic Instruction: RD Instruction 444.8 (CFR Part 1822 Subpart G) and
RD Instruction 1924-C.
For more information about this program, or to file an application, contact the local
Rural Development office in your area.