Section 538 Rural Rental Housing Guaranteed Loans

Rural Rental Housing Guaranteed Loans
CFDA 10.438 Active Loan Guarantee
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$400M FY2026
$223.3M
FY24
$176.6M
FY25
$400M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 In FY25, Rural Development invested $2.7M to rehabilitate a multifamily housing rental complex to house low- and moderate-income individuals and families. This project consists of 35 one-bedroom units and five two-bedroom units. All units were significantly renovated to improve the living conditions for all current and future tenants.

Program Objective

This program has been designed to increase the supply of affordable multifamily housing in rural areas through partnerships between Rural Development and major lending sources, as well as State and local housing finance agencies and bond insurers. The program provides Federal credit enhancement to encourage private and public lenders to make new loans for affordable rental properties that meet program standards.

Eligibility

Eligible Applicants

  • Tribal Government (other)
  • For-Profit Organization
  • Nonprofit Organization

The applicant in this program is the lender. The lender must be approved and currently active with Fannie Mae, Freddie Mac, HUD/FHA insurance programs, Ginnie Mae or be a State or local Housing Finance Agency. A member of the Federal Home Loan Bank System or other lender may be able to participate if they can demonstrate satisfactory experience with multifamily lending.

How to Apply

Award Procedure

Rural Development will review all the applications for compliance with the program requirements and issue the Conditional Commitment of Guarantee to the lender with conditions. Once the conditions are met the final Contract Guarantee will be issued.

Decisions on applications will normally be rendered within 60-120 calendar days of receipt of a complete application.

Program details & compliance

Description

The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low-and moderate-income individuals and families in eligible rural areas and towns.

Mission Categories

Primary: Multifamily

Other categories:
Rural Housing

Use of Funds

Allowed Uses

The guarantee will encourage the construction of new or rehabilitation of existing rural rental housing and appropriate related facilities. Housing as a general rule will consist of projects with five or more dwellings.

Required Documentation

Eligible borrowers include: individual partnerships; profit and not-for-profit corporations; limited liability companies; trusts; State and local agencies; and Indian Tribes.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart F — Audit Requirements

Contacts

Production and Preservation Division — Director
(202) 400-0127
USDA Rural Development 1400 Independence Avenue SW Room 5017, Washington, DC 20250
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-04. Spec v2.0. Last synced: 2026-05-29 05:34:31.