Section 538 Rural Rental Housing Guaranteed Loans

Objective

This program has been designed to increase the supply of affordable multifamily housing in rural areas through partnerships between Rural Development and major lending sources, as well as State and local housing finance agencies and bond insurers. The program provides Federal credit enhancement to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.

Who Can Apply

• Indian/Native American/Alaska Native Tribal Government (Other than Federally Recognized)
• For-Profit Organization
• Nonprofit Organization

The applicant in this program is the lender. The lender must be approved and currently active with Fannie Mae, Freddie Mac, HUD/FHA insurance programs, Ginnie Mae or be a State or local Housing Finance Agency. A member of the Federal Home Loan Bank System or other lender may be able to participate if they can demonstrate satisfactory experience with multifamily lending.

Who Benefits

Occupants must be families or persons with income not in excess of 115 percent of the Median Income at the time of initial occupancy.

Assistance Types

• Loan Guarantee

Program Contact

daniel.rogers2@usda.gov
(202) 400-0127