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USDA Rural
Development guarantees loans under the Rural Rental Housing Guaranteed
loan program for development of multi-family housing facilities in rural
areas of the United States. Loan guarantees are provided for the
construction, acquisition, or rehabilitation of rural multi-family
housing. The program is
limited to rural areas. Generally, communities are eligible if they have
populations of not more than 10,000, nor more than 20,000 if there is a
serious lack of mortgage credit.
The program has been designed to increase the
supply of affordable multifamily housing through partnerships between
USDA Rural Development and major lending sources , as well as State and
local finance agencies and bond issuers. Eligible lenders are those
currently approved and considered eligible by the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation, the
Federal Home Loan Bank members, or the Department of Housing and Urban
Development for guaranteed programs supporting multifamily housing.
State Housing Finance Agencies may also be 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.
Occupants must be very- low-, low- or moderate-income households,
elderly, handicapped, or disabled persons with income not in excess of
115 percent of the area median income. Very low income is defined as
below 50 percent of the area median income (AMI); low income is between
50 and 80 percent of AMI; moderate income is capped at $5,500 above the
low-income limit. The average rent of all units is 30 percent of 100
percent of the median income of the surrounding area (adjusted for
family size).
An applicant
must be a citizen of the United States or
a legally admitted alien for permanent residence in the United
States; a nonprofit organization such as
a local government, community development group or American Indian
tribe, band, group, or nation (including Alaskan Indians, Aleuts,
Eskimos, and any Alaskan native village); or a for-profit corporation.
USDA Rural Development Specialists will be glad to discuss
services available from the Agency and explain application procedures.
Click here for the Rural Development Specialist closest to you.
Return to Multi-Family Housing Page
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For questions, please refer to the
"Contact
Us"
page of
this website to select the proper individual. Send comments about the format of this web site to:
mailto:philip.eggman@wa.usda.gov
USDA Rural Development is an Equal Opportunity Lender, Provider and
Employer.
Complaints of Discrimination should be sent to:
USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410
EEO/CR Statement
Last modified:
February 16, 2006 |
