Under the United States Department of Agriculture, there are various home loan and housing programs that give housing opportunities, whether homeownership or rental, to individuals in the rural areas.
Having a house you can call your home would always be a part of a lot of people’s goals in life. And among the different mortgage options for interested home buyers, the USDA is part of helping people make their dream a reality.
There are quite a few home loans under the USDA that has specific purposes and markets. But for getting an affordable multi-family housing that’s targeted towards low-income families, elders, and persons with disabilities, perhaps the Multi-family Housing Direct Loans is the way to do it.
What is the Multi-family Housing Direct Loan Program all about?
As mentioned, the multi-family housing direct loan program is all about providing opportunities for eligible borrowers to get affordable multi-family rental housing.
This program would finance properties to provide housing for low-income families, persons with disabilities, and the elderly.
Who are qualified to apply for this loan program?
The program assists eligible borrowers that couldn’t get commercial credit under terms that would allow them to charge affordable rent to low- to middle-income earner tenants.
Individuals, as well as associations, partnerships, non-profit organizations, for-profit corporations, and cooperatives, can try and qualify for this type of multi-family housing program. Federal recognized tribes and state and local government entities can also try to qualify.
Keep in mind that those who wish to apply should have legal authority for construction, operation, and maintenance of the property.More about USDA loans here.
How do borrowers determine if the property is eligible?
Like other USDA programs, the locations should be considered eligible. For this program, there is a more specific way to see if the property qualifies for the loan.
In order to check if the desired property is within an eligible area, a list of places can be found in designated RD State Offices.
How should the loan be used for?
The loan should be used for purchasing, improving, and constructing multi-family rental housing in order to provide residential units that low-income renters can afford.
Other than that, the funds may be used for buying and improving land or for providing needed infrastructure.
Who can live in the property?
The units in the property should be rented by families who only have a meager income, disabled individuals, and elderlies aged 62 and above.
What are the loan terms that borrowers should know about?
The Multi-family housing direct loan should be paid back in 30 years. And as for the mortgage rate, the lowest rate that will be used would either be from the loan approval or when the loan closes.
In order to get information about the current interest rates that are applicable for the project, it’s best to contact your local Rural Development office.
Also, keep in mind that the applications for this loan program are done on a yearly basis. The Federal Register would just post a Notice of Funding Availability.
The program is a good way to help give every American a place to live in. And since this program is for low-income earners and the elderlies to have an affordable rental property, this program gives housing opportunities to those who really need it.Talk to our lenders about USDA loans today.