Multi-Family Housing Loan Guarantees – Guaranteed Loans for Rural Rental Housing
USDA – United States Department of Agriculture, Rural Development
December 31, 2021, 12:00 p.m. Eastern Time
What does this program do?
The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns.
Who may apply for this program?
Private lenders may apply for a loan guarantee on loans made to eligible borrowers who are building or preserving affordable rural rental housing.
Eligible lenders are automatically eligible if approved and active in one of the following programs:
Fannie Mae, Freddie Mac, Ginnie Mae
Federal Home Loan Bank members
State or local housing finance agencies
Eligible borrowers include:
Most state and local governmental entities
For-profit organizations, including LLC’s
Additional requirements include:
Rent for individual units is capped at 30% of 115% area median income
Average rent for an entire project (including tenant paid utilities) cannot exceed 30% of 100% of area medium income, adjusted for family size.
Complexes must consist of at least five units
Complexes may contain units that are detached, semi-detached, row houses or multi-family structures
What is an eligible area?
Areas that may be served include:
Rural areas and towns with 35,000 or fewer people — Check eligible addresses
Federally-recognized tribal lands
How may funds be used?
Construction, improvement and purchase of multi-family rental housing for low to moderate income families and individuals is the primary objective for this program. Funding may also be available for:
Buying and improving land
Providing necessary infrastructure
For a complete list see Code of Federal Regulations, 7CFR Part 3565.205