Multi-Family Housing Direct Loans
Applications accepted on an ongoing basis
USDA Rural Development (USDA RD)
Provides direct, competitive loans to borrowers seeking to construct, improve, or purchase multi-family rental housing in rural areas for families with low income, elderly people, and people with disabilities. Offers loan terms that enable qualified applicants to charge lower rents and provide housing that is affordable for tenants with low income. Loans may also be used to purchase or improve land and to provide infrastructure necessary to support multi-family housing.
Multi-family housing developed under this program is reserved for tenants in rural areas with very low to moderate income, elderly people aged 62 or older, and people with disabilities. For the purposes of this program, very low income is defined as an income at or below 50% of the area median income. Low income is 50-80% of area median income, and moderate income is $5,500 above the low-income limit.
Amount of Funding
Loan amounts vary. Interest rates will be set at the lowest rate available at the time of loan approval or loan closing. The payback period may be up to 30 years.
Who Can Apply
Qualified borrowers that cannot obtain commercial credit on terms that will allow them to charge rents that are affordable to tenants with low income may apply.
Eligible applicants include:
- Partnerships and limited partnerships
- Nonprofit organizations
- For-profit corporations
- Consumer cooperatives
- Most state and local governmental entities
- Federally recognized tribes
Contact the local USDA Rural Development state office for a list of designated rural places eligible for this program.
What This Program Funds
Buildings and Facilities • Capacity Building • Equipment
Application information, requirements, instructions, and forms are available on the program website.
Contact your local USDA Rural Development state office to discuss your specific project and the application process in further detail.
Use the USDA Multi-Family Housing Rentals search tool to find housing and apply as a tenant.
For program questions:
Contact the appropriate USDA Rural Development state office.
Topics This Program Addresses
Elderly People • Housing and Homelessness • Infrastructure • People with Disabilities