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Nebraska
Housing

Housing

 

Guaranteed Rural Rental Housing Loan Program

For the construction of new or the purchase of an existing building (s) with rehabilitation as outlined in agency regulations or rehabilitation and revitalization of existing Section 515 Rural Development financed properties.

Eligibility:

  • Non profit corporations, public bodies, and for-profit organizations may apply for a guarantee through an eligible lender. 
  • Qualified lenders are authorized to originate, underwrite and close loans to eligible applicants to construct new multi-family housing complexes in rural areas.  Lenders may also make loans for the purchase of an existing rural property where rehabilitation of at least $6,500 per unit is needed.   The Rural Housing Service guarantee to the lender will be limited to 90 percent.
  • Eligible Nebraska lenders include those lenders currently approved as multi-family housing lenders through Fannie Mae, Freddie Mac, Ginnie Mae and HUD or can demonstrate adequate ability to originate and service multifamily housing loans.

 

Terms and Conditions:

  • The minimum loan term is 25 years and the maximum is 40 years.

 

  • The interest rate must be fixed and is negotiated between the lender and the borrower.

 

  • The amount of the loan varies depending on the development cost and appraised value of the property.  Loan amounts are limited to HUD 207C per unit maximum published annually.

 

  • Non-profits and public bodies can borrow up to 97 percent of the value or development costs, whichever is less.  For-profit organizations can borrow up to 90 percent of the value or development costs, whichever is less.

 

  • Tenant income can be up to the moderate income limit for the area.  Income Limits.

 

  • Eligible entities are invited to apply under a Notice of Funding Availability (NOFA) which is announced each year.

 

 

 

 

See Also
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Last Modified:11/29/2012 
 
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