Rural Rental Housing Guaranteed Loan Program:

PURPOSE

The Rural Rental Housing Guaranteed Loan Program provides guaranteed loans to families and elderly renters who qualify to help pay for safe, affordable rental housing

ELIGIBILITY (BORROWERS)

Families

Individuals

State & local Agencies 

For-Profit Corporations

Non-Profit Organizations

Federally Recognized Indian Tribes

Limited Liability Companies & Trusts

ELIGIBILITY (LENDERS)

Fannie Mae

Freddie Mac

Housing & Urban Development

Lenders with multi-family lending experience and demonstrated capacity to provide all aspects of loan processing, & asset management functions, including disposition

FUND USE

All Hard Costs 

New Construction

Substantial rehabilitation of rental housing

Take-out permanent financing & combination construction/permanent loans

Soft Costs – Professional services, bond fees, developer’s fees, land acquisition & development, & cost of financing

RATES

Fixed interest rate over the term of the loan

Interest negotiated between lender & borrower

Buy down of interest rate with annual interest credit payments up to the Applicable Federal Rate

TERMS OF REPAYMENT

25 year minimum; 40 year maximum

25 year minimum for balloon with 40 year amortization

MAXIMUM AMOUNTS

No loan limit

RESTRICTIONS

Rural areas, towns, & cities maximum population – 20,000 or less

Family or individual income at time of initial occupancy must not exceed 115 percent of median income

Rent (including tenant-paid utilities) for any unit at initial occupancy cannot exceed 30 percent of 115 percent of median income, adjusted for family sized

Average rent (including tenant-paid utilities) for all units in a project cannot exceed 30 percent of 100 percent of area median income

APPLY TODAY

To get started building your future today, contact your Rural Development State Office to fill out a Rental Housing for Family & Elderly Loan Guarantee Program Application to begin the approval process