PROGRAM
DESCRIPTION: Rural Development makes loans to finance building sites,
which may be developed into desirable residential communities.
TYPE OF ASSISTANCE: Section 524 site loans may be made in
conjunction with Section 523 Self-Help Loans.
ELIGIBILITY REQUIREMENTS: Loans can be made to public or private
local non-profit organizations with legal authority to buy, develop, and
sell home sites to eligible applicants.
FUND AVAILABILITY: Funding is held at the National level and the
State Office must request an allocation for each loan.
INTEREST RATE: Section 523 loans have a 3% interest rate.
Section 524 loans are based upon market conditions.
TERMS: Two years.
COLLATERAL: Each loan will be adequately secured to protect the
interest of the Government.
FEES: None.
CREDIT REQUIREMENTS: No down payment required. Applicants
should have resources available to put together the application, which
among other documents will require a site plan.
CONTACT: Applications are made at Rural
Development Local Offices.
Minnesota
