Rent Pre-Payment (RPP) Loans are 0% APR installment loans that can support an IRC client, who is new to the US, in securing housing by pre-paying up to 6 months of rent as part of the negotiation for getting a landlord to agree to offer a lease.
RPP loans must be repaid by the borrower. Borrowers will make loan payments equal to their regular rent amount until the loan is repaid. Therefore, it is imperative that an applicant must be able to afford their normal monthly rent amount for the unit that is being leased.
Current loan term for RPP loan.
| Maximum Amount | $15,000 |
| Maximum Term | 6 months |
| Interest Rates | 0 % |
| Closing Fees | 0 % |
Note: The loan amount requested cannot be more than $15,000 or cover more than 6 months of rent.
Rent Pre-Payment (RPP) loans FAQs
Who can apply?
- Applicants must be referred by IRC for this pilot program and must be formally assigned an IRC Housing Specialist who is responsible for securing permanent housing, their first housing in the US.
- IRC staff can provide the application document and steps to apply for this loan.
How does it work?
- CEO will pre-pay the loan amount to the landlord directly after clients electronically sign their loan agreement. We prefer to make payment by ACH digital transfer, but can also make payment by certified check.
- This is a loan, not a grant. Borrowers will have to make payments for the size of their normal rent to CEO instead of the landlord until the loan is paid in full. Afterward, the client will make recurring rent payments directly to the landlord.
Importance of repayment
As we mentioned, this is a loan, not a grant, and it is important for borrowers to repay this loan for the following reasons:
- It will help us support more families who still need to secure permanent housing.
- It will help you build your credit score, which is very important for your financial future in the US (ask your IRC Financial Coach for more information about the credit score).
Other things to consider
✓ Borrowers must be connected to an IRC financial counselor/coach within 30 days of loan disbursement, in order to learn about credit and get help in opening a bank account, reviewing budget, etc.
✓ Once a bank account is opened, you must inform CEO of your bank account details so that we may set up loan repayment.
✓ Loan repayments will be made via automatic ‘AutoPay’ from the borrower’s designated bank accounts. Each payment will equal the amount of rent that would normally be paid to the landlord.
✓ Loan funds will only be used to pre-pay rent and will be paid directly to landlords.
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