PROGRAM DESCRIPTION: This program makes loans to fianance building sites which may be developed into residential communities.
TYPE OF ASSISTANCE: Section 523 loans made for housing to be built under the Self-Help method of home construction may be made in conjunction with Section 524 Site Loans.
ELIGIBILITY REQUIREMENTS: Loans can be made to public or private local non-profit organizations with legal authority to buy, develop, and sell homesites 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 downpayment required. Applicants should have resources available to put together the application which will require site plans.
For assistance, please contact the Area Office which serves the area you are interested in, or Barbara Beard-Hinton, Acting Program Director. Ms. Hinton can be reached at 919-873-2011 or by barbard.beard@nc.usda.gov
Please send any comments or suggestions to:
Rdwebmaster@wdc.usda.gov
Revised on: June 2013