What is the GRRHP in commercial real estate?
The GRRHP or Guaranteed Rural Rental Housing Program is a federal government initiative which backs loans made by private lenders to developers of rural homes. The GRRHP program enables lenders to offer permanent loan option for the construction, acquisition or rehabilitation of rural multifamily properties through the United States Department of Agriculture’s (USDA) RD 538 program. USDA stipulations usually include a guarantee of up to 90% and flexible amortization options with optional balloon structure. This is done in an effort to appeal to developers by drastically reducing the risks of building in rural areas while simultaneously maximizing returns.