Benefit Category: Federal
Rural Development, a mission area under the United States Department of Agriculture (USDA), seeks to increase economic opportunity and improve quality of life in rural America. Through several programs, Rural Development offers financing for safe and affordable housing in rural areas and communities under 35,000 in population. Residents with very low- to moderate- income may qualify for the housing assistance listed below.
- Homeownership: mortgage financing to construct, purchase or rehabilitate a home.
- Home Repair: loans and grants to make necessary home improvements that remove health and safety hazards and to make homes accessible.
- Rental Assistance: financial support may be available if an individual is living in a multi-family housing complex financed by USDA. These properties are located across the state.
- Servicing: flexible servicing options are accessible to allow a current USDA borrower to remain in their home.
Community Facilities Programs
Community Facilities Programs provide loans, loan guarantees and grants for essential community facilities including homeless shelters and other facilities serving rural veterans. Funding is available to public entities such as municipalities, counties, and special-purpose districts, as well as to non-profit corporations and tribal governments in rural areas and towns of up to 20,000 in population.
Multi-family Housing Programs
The USDA subsidizes over 15,000 rural multi-family apartment complexes throughout the 50 states, Puerto Rico, the Virgin Islands and Guam. Properties are classified as Elderly or Family and provide unit sizes from studio to 4 bedrooms. The properties are serviced by approved Management Agencies who provide required annual tenant certification processing for their residents.
The USDA also provides project-based Rental Assistance for apartment units. Tenants receiving Rental Assistance pay no more than 30% of their adjusted income for rent. Eligibility is determined by income standards set at the state and county level.
The website to locate a multi-family housing property:
Single Family Housing Inventory Property
Real estate owned by USDA is available for purchase/lease to qualified applicants. To find a list of Real Estate Owned (REO) properties in Nevada, check with your local USDA Rural Development office or go to the website.
Non-program real estate owned properties are available for lease to a public body or nonprofit organization for transitional housing for the homeless. In lieu of cash rent, the entity is required to maintain the property, pay real estate taxes and maintain property insurance.
Single Family Housing Programs
Loans are available to help low- to moderate- income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home. This financing can be accessed through an approved lender or directly from USDA, depending upon income.
Single Family Housing Loan Servicing Options
Some borrowers will encounter financial or personal issues that make it difficult or impossible to meet the terms and conditions of a mortgage. In response, USDA provides special servicing activities that are designed to help the borrower become current and succeed in repaying the loan.
- A moratorium “stops the clock” on payments for up to 2 years to enable the borrower to recover from significant loss of income or unexpected expenses due to loss of employment, reduction in hours, or inability to work due to circumstances beyond the borrower’s control.
- Amounts that accrue during the moratorium are repaid in a lump sum or by re-amortizing the loan and including the amounts accrued in the outstanding balance.
- Payment assistance to reduce the borrower’s required payment may be made available to eligible borrowers living in eligible units.
Delinquency Workout Agreements
- Through delinquency workout agreements of up to 2 years, borrowers agree to make the required monthly payment plus an amount that will bring the account current.
- Most commonly used to pay taxes and insurance and initial contributions to a newly established escrow account.
- May also be used to provide funds for repairs to the security property if the borrower cannot qualify for a subsequent loan.
- Advances are repaid through a lump sum, payment schedule consistent with the borrower’s ability to pay, or by re-amortizing the loan.