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Eligibility |
Fund Uses |
Application Processing |
Eligibility top
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The Rural Housing
Programs 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.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.
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% 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% of 100% of the median income of
the surrounding area (adjusted for family size).
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Fund Uses top |
The program has been designed to increase the supply
of affordable multifamily housing through partnerships between HCFP and major lending
sources , as well as State and local finance agencies and bond issuers.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
HCFP maximum established under the Notice of Fund Availability (NOFA). The rate is based on
the 30-year Treasury Bond rate on the day prior to date of loan closing. Maximum rent is
30 percent of 115 percent of median income, and average rent of all units is 30 percent of
100 percent of the median income adjusted for family size.
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. |
Application Processing top |
Loans of up to $1,500,000 must be approved by State
Directors. All requests for loans above $1,500,000 must be reviewed by the
HCFP
National Office. |
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