The Purpose Of The Guaranteed Rural Rental Housing Program Is...To construct new or acquire and rehabilitate existing rural apartment-housing units. 

Qualified lenders are authorized to originate, underwrite and close loans to eligible applicants to construct new multi-family housing complexes in rural areas.  Lenders may also make loans for the purchase of an existing rural property where rehabilitation of at least $6,500 per unit is needed.  The Rural Housing Service guarantee to the lender will be limited to 90 percent. 

Eligible Borrowers Include...Nonprofit corporations, public bodies, and for-profit organizations may apply for a guarantee through an eligible lender.

The minimum loan term is 25 years and the maximum is 40 years.  Loans need to be fully  amortized.

The interest rate must be fixed and is negotiated between the lender and the borrower.

The amount of loan varies depending on the development cost and appraised value of the property. 

Non-profits and public bodies can borrow up to 97 percent of the value or development costs, whichever is less.  For-profit organizations can borrow up to 90 percent of the value or development costs, whichever is less.

Tenant income can be up to the moderate income limit for the area.  Income limits can be accessed at:  http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm.

Eligible entities are invited to apply under a Notice of Funding Availability (NOFA) which is announced each year

Eligible Lenders Include...Nebraska lenders currently approved as multi-family housing lenders through Fannie Mae, Freddie Mac, Ginnie Mae and HUD. 

View...The detailed Guaranteed Rural Rental Housing Loan Fact Sheet.