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Best Practice

Establish a Revolving Loan Fund

State and local governments can establish a revolving loan fund to provide down payment assistance to new and/or low-income homebuyers. Starting capital is often provided by state and federal governments, and the funds can be managed by the local jurisdiction, housing agency, or nonprofit developer. These funds are used to increase homeownership opportunities, especially for individuals with low to moderate income levels.


The fund can be set up for a specific period of time, or in perpetuity, which will affect long-term costs. Setting up the fund may take many months of fundraising; and jurisdictions will have to prepare for some loans to not be repaid.


18-24 months to create the fund, plus necessary on-going monitoring


Collaboration / Partnerships, Government, Homelessness, Ownership


Affordable Housing, Increase Homeownership

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Urban and Rural

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