Bank of America & USDA Multi-Family Financing
No, Bank of America generally does not originate or underwrite USDA Section 538 Guaranteed Rural Rental Housing loans directly.
While Bank of America's Community Development Banking division actively funds affordable housing projects—frequently providing construction loans, Low-Income Housing Tax Credit (LIHTC) equity, and HUD/FHA debt—they typically leave USDA Section 538 loan origination to specialized commercial lenders, mortgage bankers, and housing finance agencies.
Under USDA regulations, any lender approved by Fannie Mae, Freddie Mac, HUD, or a Federal Home Loan Bank (FHLB) is automatically eligible to originate Section 538 loans, but most large national retail banks choose not to service this specific government program.
Lenders Active in Michigan for USDA Multi-Family Financing
To finance a multi-family project using USDA Section 538 guarantees or state affordable housing capital in Michigan, developers usually work with two main categories of lenders:
1. Specialized National & Regional USDA Multi-Family Lenders
These commercial lenders specialize in Section 538 loans, government-guaranteed debt, and LIHTC syndication:
- Bellwether Enterprise (BWE): A leading national lender with a dedicated USDA Section 538 program office and heavy activity in Midwest multi-family construction.
- Churchill Stateside Group: Specializes in USDA Section 538 debt, tax-exempt bond underwriting, and LIHTC equity financing for rural housing.
- Greystone / PGIM Real Estate: Major national HUD, Fannie Mae, and USDA multi-family lenders operating in Michigan.
- Janover Commercial Lending / Merchants Capital: Active nationwide in arranging Section 538 construction-to-permanent financing.
2. Regional Banks & State Financial Partners Active in MI Affordable Housing
If you prefer a regional commercial bank with local Michigan operations, these lenders participate heavily in Michigan State Housing Development Authority (MSHDA) programs and federal commercial housing guarantees:
- Huntington National Bank: Highly active in commercial real estate and community development financing across Michigan.
- Flagstar Bank / New York Community Bank (NYCB): Active commercial multi-family lender based in Michigan.
- Old National Bank & Fifth Third Bank: Maintain active commercial community development lending divisions in the state.
Recommended Next Steps
- Contact a USDA-Approved Section 538 Specialist: Reach out to mortgage banking firms like Bellwether Enterprise or Churchill Stateside Group for an initial term sheet. They can structure the loan to cover both the construction phase and long-term permanent financing.
- Engage the USDA Regional Office: Connect with the USDA Rural Development Midwest Regional Office (MFHFODMidwest@usda.gov) to verify project pipeline availability and connect with recent active lenders in Livingston County.