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Multi-Family Housing Direct Loans
Multi-Family Housing Direct Loans provide loans for the development of affordable rental housing in rural communities for seniors, individuals, and families. Low and very-low income households are targeted as tenants, but moderate income households are also eligible. Rural Development may also provide Rental Assistance (RA) with its loan. Rental Assistance is a project-based tenant subsidy that pays a portion of tenant shelter costs, reducing them to an affordable level (30 percent of adjusted income).
Program Details
| Borrower Eligibility: |
Borrowers must have sufficient qualifications and experience to develop and operate the project, a good credit history, no delinquent federal debt, and no federal housing violations. Borrowers can include any of the following:
- Individuals who are U.S. citizens and permanent residents
- General or Limited Partnerships
- Corporations
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Limited Liability Companies
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Nonprofits
- Cooperatives
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Public Bodies (including housing authorities and Native American Tribes)
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| Project Eligibility: |
Projects must:
- be in a rural area, unincorporated areas and cities of less than 10,000 - 20,000 population
- located in a community on an eligible property
- consist of at least two rental unit
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| Terms: |
Maximum 30 year mortgage (up to a 50 year amortization).
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Interest: |
Fixed at the current market rate of interest. Loans may be eligible for interest credit which subsidizes the interest to a one percent (1%) rate.
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Credit: |
Loans can be made up to the value of the security as determined by an appraiser. Applicants contribute any difference between cost and security value.
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Collateral: |
Appraisal must indicate security value equal to or greater than the loan.
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| More Information: |
For more information, contact our State Office at (785) 271-2700.
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