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Rural Development

Housing & Community Facilities Programs

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Multi-Family Housing Programs

Eligible lending partners for Housing and Community Facilities Programs Multi-Family Housing loans are those currently approved and considered eligible by:

  • the Federal National Mortgage Association
  • the Federal Home Loan Mortgage Corporation
  • a member of the Federal Housing Finance Board, or
  • the Department of Housing and Urban Development.

State Housing Finance Agencies are also considered eligible lenders.  Other lenders have the opportunity to enter into a correspondent bank relationship with approved lenders in order to participate in the program.

Rural Rental Housing Guaranteed Loan Program (Section 538)

This program is intended to fund construction, acquisition, or rehabilitation of rural multifamily housing for low-income occupants.  The Housing and Community Facilities Programs guarantees up to 90% of the amount of the loan from a private lender to a housing developer.

Residents of the completed housing facility must be very low- to moderate-income households; or elderly, handicapped, or disabled persons with income not in excess of 115% of the median income of the surrounding area.

The terms of the loans guaranteed may be up to 40 years, and the loans must be fully amortized. Rates of the loans guaranteed must be fixed, as negotiated between lender and borrower, within the maximum established under the Notice of Fund Availability (NOFA) HCFP publishes each year in the Federal Register.

The rate is based on the 30-year Treasury Bond rate on the day prior to date of loan closing.

For more information about the Rural Rental Housing Guaranteed Loan Program, click here.

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