Temporarily ClosedNot Currently Accepting ApplicationsFederal

Multifamily Housing Direct Loans.

USDA's Section 515 program provides competitive direct loans for affordable rural rental housing serving low-income, elderly, or disabled residents.

Offered byUSDA Rural Housing Serviceverified 2026-07-10

Overview

What it does.

A Chester project may fit the rural-housing purpose, including new construction, acquisition, or rehabilitation, but applications are currently closed and a future notice must identify available funding and requirements.

Best for: Experienced affordable-housing sponsors developing or preserving rural rental housing for income-qualified residents.

Eligibility

Who and what may qualify.

Eligible applicants

  • Qualified individuals, trusts, associations, partnerships, limited partnerships, nonprofits, for-profit corporations, and consumer cooperatives
  • Most state and local governmental entities
  • Federally recognized tribes

Applicants excluded by the source

  • Applicants able to obtain commercial credit on terms that support affordable rents
  • Projects outside designated eligible rural places

Eligible uses

  • Construction, purchase, or improvement of affordable multifamily rental housing
  • Related land and necessary infrastructure

Uses excluded by the source

  • Market-rate projects without required affordable occupancy
  • Projects outside program place and tenant eligibility rules

Application

How to start.

  1. Discuss the location, sponsor, tenant population, and financing need with USDA Multifamily Housing
  2. Monitor for a new Notice of Funding Availability or Solicitation of Applications
  3. Prepare site, market, development, management, environmental, and financial documentation

Timing: USDA states applications will be accepted only after publication of a new funding notice.

Planning notes

Limits to account for.

  • No current application window
  • Long-term affordability, tenant, management, and federal compliance requirements apply
  • Applicant must show it cannot obtain suitable commercial credit

Affordable-housing projects often require layered financing, but all liens, subsidy, eligible-cost, and affordability requirements must be coordinated.

Evidence

Official sources.