A United States Department of Agriculture (USDA) ‘Multi-Family Housing Loan’ may often be described as a sort of loan that has been issued by any and all duly govt qualified lenders (or lending institutions as the case may be), for the overall development of various small towns as well as rural areas, scattered all over the US.

As a general rule, all USDA housing loans have been specifically designed for various different income levels of the residents living in the house. Hence the creation of the term ‘multi-family housing loan.’ An important criterion that generally separates USDA loans from many other loans, is that the income of the erstwhile borrower has to be judged, based on an already pre-specified cap.

This program generally works with many different already pre-qualified lenders who are available in the private sector who will compete with each other, in a bid to provide the necessary amount of financing to various duly vetted borrowers.

Here, the core purpose would be to increase the overall supply of highly affordable housing for not just low but also moderate income earning individuals too and their families who are located in the eligible rural towns and areas. However, here a point to be noted is that their eligibility would be determined by the USDA or the United States Department of Agriculture, rather than by either the prospective borrowers, as well as the lenders

  • Meeting the demanding application criteria for this program

Both individual lending institutions as well as persons desirous of availing this facility are also equally eligible to apply for the same, predicted that is, that they are able to meet certain requirement criteria, which include the following:

o   The various eligibility criteria for lenders


Eligible lenders are automatically deemed to be so, if they have already been vetted and also approved and are moreover, active in any one of the following programs:

  • Fannie Mae
  • HUD
  • Freddie Mac
  • State or local housing finance agencies
  • Gennie Mae
  • Federal Home Loan Bank (FHLB) members

o    Eligible criteria for home loan borrowers

  • NPOs or Not for profit organizations
  • Most state and local governmental entities
  • Federally recognized indigenous tribes (specifically the various recognized native American tribes in particular)
  • For-profit organizations


o    Additional requirements for aspiring applicants


  • Rent for individual units is generally capped at 30 percent of 115% of that area’s median income
  • The average rent for any project, inclusive of all of its tenant paid utilities, should not be allowed to exceed 30 percent of 100 percent of that locale’s average income
  • All the residential complexes in an area should consist of at least 5 units.




o    Conclusion


The concept of USDA home loans is centered around the concept of home loan facility for people who are in need of housing but are not able to afford it at all. And for these people such loans are certainly a great boon indeed.