PROGRAM DESCRIPTION: Eligible applicants receive loans to provide rental housing in rural areas to provide living units for persons with incomes of up to 115% of median.
TYPE OF ASSISTANCE: Loans can be made for a variety of rental housing types; for example, family, elderly, congregate and group home.
ELIGIBILITY REQUIREMENTS: Eligible lenders must have the ability to underwrite, originate, process, close, service, manage and dispose of multi-family houisng loans in a prudent manner. FUND AVAILABILITY: Preapplications are selected into the funding cycle based on an Notification of Fund Availability (NOFA) which is published annually. INTEREST RATE: Rates on loans guaranteed must be fixed, as negotiated between lender and borrower within the RHS maximum established under the NOFA. A rate is based on the 30 year Treasury bond rate on the day prior to date of loan closing. TERMS AND COLLATERAL: A first mortgage or deed of trust is required. Terms of loans guaranteed may be up to 40 years and loans must be fully amortized. FEES: Initial loan guarantee fee is 1% payable to RHS. Additional fees may be charged on portions advanced during construction. Annual servicing fee is 1/2% of outstanding balance due annually. Application fee of $2500. CONTACT: Preapplications are made at the Rural Development State Office. For assistance, please contact the Area Office which serves the area you are interested in, or William Hobbs, Program Director. Mr. Hobbs can be reached at 919-873-2063 or email:bill.hobbs@nc.usda.gov. Please send any comments or suggestions to:
Rdwebmaster@usda.gov