Rural Housing Site Loans

Rural Housing site loans provide two types of loans to purchase and develop housing sites for low- and moderate-income families. Section 523 loans are used to acquire and develop sites only for housing to be constructed by the Self-Help method. Section 524 loans are made to acquire and develop sites for low- or moderate-income families, with no restriction as to the method of construction.

Loans are two-year loans. Section 523 loans have 3% interest rate. Section 524 loans' interest rate is below-market-rate, established and published monthly, and fixed at closing.

Applications are accepted on an ongoing basis!

Eligibility

For Section 523 loans, eligible applicants are private/public non-profit organizations that will provide solely for self-help housing. For Section 524 loans, eligible applicants are private/public non-profit organizations who sell building site using mortgage financing program that serves low- and moderate-income families. Both programs accept applications from Federally-recognized tribes.

All nonprofit applicants must have legal authority to operate revolving loan fund and the the financial, technical and managerial capacity to comply with relevant federal and state laws and regulations.

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