6 Benefits Of Using A Multifamily USDA 538 Loan | Bonneville Multifamily Capital
Multifamily USDA 538 loans are designed for apartment complexes and other multifamily dwellings. The loans are made through the USDA Rural Development program, and they offer a number of benefits for multifamily property owners.
Here are six benefits of using a multifamily USDA 538 loan:
- Low Interest Rates
Multifamily USDA 538 loans offer low interest rates, which can save you thousands of dollars over the life of the loan.
- No Down Payment Required
Multifamily USDA 538 loans do not require a down payment, so you can finance 100% of the purchase price of your multifamily property.
- Long Loan Terms
Multifamily USDA 538 loans have long loan terms, up to 40 years, which can make your monthly payments more affordable.
- Flexible Repayment Options
Multifamily USDA 538 loans offer flexible repayment options, including deferred and income-based repayment plans. This can help you keep your monthly payments affordable if your income fluctuates.
- No Private Mortgage Insurance Required
Multifamily USDA 538 loans do not require private mortgage insurance, so you can save money on your monthly payments.
- Property Taxes and Insurance May Be Included in Your Loan
Multifamily USDA 538 loans may include property taxes and insurance in your monthly payments, which can make budgeting for your multifamily property easier.
If you are interested in using a multifamily USDA 538 loan to finance your multifamily property, be sure to contact a USDA Rural Development lender. They can help you determine if this is the right loan for you and answer any questions you have about the application process.
How multifamily USDA 538 loans differ from RHS multifamily USDA loan programs
Multifamily USDA 538 loans are made through the Rural Housing Service (RHS), a division of the United States Department of Agriculture (USDA). RHS multifamily USDA loan programs include Section 514, which provides financing for rural housing projects, and Section 515, which provides financing for farmworker housing projects.
Multifamily USDA 538 loans are similar to RHS multifamily USDA loan programs in that they offer low interest rates, no down payment required, and long loan terms. However, there are a few key differences between the two programs.
First, multifamily USDA 538 loans are available to both multifamily property owners and developers. RHS multifamily USDA loan programs are only available to developers.
Second, multifamily USDA 538 loans can be used for the purchase or refinancing of multifamily properties. RHS multifamily USDA loan programs can only be used for the construction or rehabilitation of multifamily properties.
Third, multifamily USDA 538 loans have a maximum loan amount of $20 million. RHS multifamily USDA loan programs have a maximum loan amount of $5 million.
Fourth, multifamily USDA 538 loans can be used for properties with up to 50 units. RHS multifamily USDA loan programs can be used for properties with up to 20 units.
Finally, multifamily USDA 538 loans are not available in all states. RHS multifamily USDA loan programs are available in all states. Be sure to contact a USDA Rural Development lender.
