In USDA-designated areas, Rockhall can provide new construction and substantial rehabilitation loans for affordable rental housing projects. In a number of cases, the terms for USDA Section 538 loans are more liberal than FHA. For profit borrowers may receive loan amounts up to 90% of cost or value. Debt service coverage ratios can be as low as 1.15%. Unlike FHA, USDA allows hard second mortgages.
Summary of Terms - USDA 538