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Download Term Sheet
FANNIE MAE® DUS
Rural Development Guaranteed Rural Rental Housing Program
Permanent loan option for the construction, acquisition or rehabilitation of rural multifamily properties through the United States Department of Agriculture’s (USDA) RD 538 program.
BENEFITS
- Mitigate loan losses with 90% USDA guaranty.
- Certainty and speed of execution.
- Flexible loan amortization terms.
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ELIGIBILITY
- Lenders approved by RD and Fannie Mae.
- Preservation transactions with rent subsidies.
- Minimum $6,500 per unit rehabilitation required.
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Term
25 – 40 years.
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Amortization
25 – 40 years; fully amortizing or balloon structures permitted.
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Interest Rate
Fixed-rate.
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Maximum LTV
90% (Public Entities/Nonprofits up to 97% subject to Fannie Mae approval).
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Minimum DSCR
1.15x.
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Recourse
Lender recourse for losses not covered by RD’s guaranty.
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AFFORDABILITY RESTRICTIONS
Project averaged rent capped at 30% of Area Median Income, adjusted for family size.
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PROPERTY CONSIDERATIONS
Eligible Rural Areas are determined by USDA RD. RD loan application approved through the RD Notice of Funds Availability (NOFA) process. Refinance transactions are not eligible.