Multi Family Housing Direct Loans provide loans for the development of affordable rental housing in rural communities for seniors, individuals, and families. Low and very-low income households are targeted as tenants, but moderate income households are also eligible. Rural Development may also provide Rental Assistance (RA) with its loan. Rental Assistance is a project-based tenant subsidy that pays a portion of tenant shelter costs, reducing them to an affordable level (30 percent of adjusted income).

Borrowers must have sufficient qualifications and experience to develop and operate the project, a good credit history, no delinquent federal debt, and no federal housing violations. Borrowers can include any of the following:

Individuals who are U.S. citizens and permanent residents

General or Limited Partnerships

Corporations

Limited Liability Companies

Nonprofits

Cooperatives

Public Bodies (including housing authorities and Native American Tribes)

Projects must:

be in a rural area, unincorporated areas and cities of less than 10,000 - 20,000 popultaion

located in a community on an eligible property

consist of at least two rental units

The application process and competitive criteria is described in the annual Notice of Funding Availability (NOFA) published by RHS.

Maximum 30 year mortgage (up to a 50 year amortization).

Fixed at the current market rate of interest. Loans may be eligible for interest credit which subsidizes the interest to a one percent (1%) rate.

Loans can be made up to the value of the security as determined by an appraiser. Applicants contribute any difference between cost and security value.

Appraisal must indicate security value equal to or greater than the loan.

None.

Contact our State Office for more information.