Acquisition Loans Create Affordable Rental Housing or Homeownership

The funds obtained through an acquisition loan are intended to finance the typical costs of acquiring properties which are to be developed for affordable rental housing or for home ownership programs. This money may also be used with for the legal costs, as well as any other expenses related to acquisition closing. These types of loans cannot be used to refinance existing debt. Acquisition loans can also be used to finance the purchase of business or commercial properties in distressed or under-served areas, with the intention that by doing so the value and business potential of the surrounding properties will be increased. Individuals who wish to finance the purchase or building of their first home and meet certain eligibility criteria may also be approved for an acquisition loan.