Eligible lending partners for Housing and Community Facilities Programs Multi-Family Housing loans are those currently approved and considered
- the Federal National Mortgage Association
- the Federal Home Loan Mortgage Corporation
- a member of the Federal Housing Finance
- the Department of Housing and Urban
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
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
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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