Rural and Rental Housing Guaranteed Loan Program (Section 538)
This program is intended to fund construction, acquisition, or rehabilitation of rural multifamily housing for low-income occupants. Residents of the completed housing facility must be very low- to moderate-income households; or elderly, handicapped, or disabled persons with income not in excess of 115% of the median income of the surrounding area.
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 maximum established under the Notice of Fund Availability (NOFA) HCFP publishes each year in the Federal Register.
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