Iowa

Rural Rental Housing Guaranteed Loans are loans that are funded by conventional lenders (banks, mortgage companies, etc.). USDA protects the lender by limiting the loss in the event of default.

Qualified lenders are authorized to originate, underwrite, and close loans to eligible borrowers to construct new multi-family housing projects. Lenders may also make loans for the purchase of an existing property where rehabilitation of at least $15,000 per unit is needed. RHS will guarantee the lender's loan up to 90% of total development cost. Eligible loan recipients include non-profit corporations, public bodies, and for-profit organizations. Communities under 20,000 population located in non metropolitan areas are eligible. Funding is available through a Notice of Funding Availability (NOFA) which is announced each year.

This program is intended to fund construction, acquisition with rehabilitation of rural multifamily housing for low-income occupants.

The terms of the loans guaranteed may be up to 40 years, and the loans must be fully amortized. Rates of the loans guaranteed must be fixed, as negotiated between lender and borrower, within the maximum established under the Notice of Fund Availability (NOFA) RHS publishes each year in the Federal Register.



For information regarding the above program, please contact the Rural Housing Section of the USDA Rural Development Iowa State Office. To send email click on Iowa State Office or phone at 515-284-4666

Please send any comments or suggestions to:
keith.bastow@ia.usda.gov
Iowa Rural Development
Revised on: June 21, 2004