Section 515 Rural Rental Housing Loans 

Apartment living is often the alternative for people who cannot afford the purchase price and maintenance costs of their own individual house. Rural Rental Housing loans are made to finance building construction and site development of multi-family living quarters for people with low, very low, and moderate incomes. 

Loans are made in rural areas to provide living units for persons with low and moderate incomes and for those age 62 and older, disabled or handicapped. Eligible applicants include individuals, trusts, associations, general partnerships, limited partnerships, profit and nonprofit corporations. Loans to nonprofits may be up to 100 percent of the appraised value or development cost, whichever is less. Financing is limited to 95 percent for applicants utilizing the Low Income Housing Tax Credit Program, or 97 percent if these credits are not sought. Loans are primarily used to build, purchase or repair apartment style housing. The housing must be modest in size, design and cost, but adequate to meet the tenants' needs. Rent charges must be within limits that eligible occupants can afford to pay. The application deadlines and areas for which these applicants can be considered is published in the Federal Register annually. 

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Section 538 Rural Rental Housing Guaranteed Loan Program

The purpose of the Rural Rental Housing Guaranteed Loan Program is to increase the supply of affordable rural rental housing, through the use of loan guarantees that encourage partnerships between Rural Development, private lenders and public agencies. Rural Development is not the lender. West Virginia lenders are approved by Rural Development to participate in this program. Rural Development will issue guarantees on eligible loans approved by these lenders. The dates for which applications will be accepted is published in the Federal Register annually. 

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Farm Labor Housing

Farm Labor Housing provides loans and grants to farm workers, family farm organizations, state and local public agencies and private broad based organizations or nonprofit organizations of farm workers. The basic objective is to provide decent, safe and affordable housing for domestic and migrant farm labor located in areas where the need exists. 

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Copyright © August 1996, USDA Rural Development Revised on: March 23, 2005