Apartment Building

USDA Guaranteed Rental Housing Loans

Multifamily housing programs offer rural rental housing loans to provide affordable multifamily rental housing for very low-, low-, and moderate-income families, the elderly, and persons with disabilities. This is primarily a direct mortgage program, but funds may also be used to buy and improve land and to provide necessary facilities such as water and waste disposal systems. In addition, deep subsidy rental assistance is available to eligible families.


The program is designed to provide affordable housing for low- or moderate-income families or individuals whose incomes at initial occupancy do not exceed 115 percent of the AMI adjusted for family size. Monthly rent for a unit may not exceed 30 percent of 115 percent of adjusted AMI. Average project rent may not exceed 30 percent of 100 percent of AMI.


Very low-, low-, and moderate-income families; the elderly; and persons with disabilities are eligible for tenancy of Section 515-financed housing. 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. When rental assistance is used top priority is given to very low-income households.

Fund Uses

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 maximum loan to value is 90% for for-profit entities and 97% for non-profit entities. The guaranteed loan has a minimum term of 25 years and a maximum term of 40 years. There is no maximum or minimum loan amount. The interest rate negotiated between the borrower and lender is fixed for the life of the guaranteed loan.

USDA Apartment Loans