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