CRA Loans CRA stands for “Community Reinvestment Act”.  Several years ago the federal government passed the Community Reinvestment Act, which requires banks to put money back into the communities they serve. One way of doing this is through discounted interest rate loans for low and moderate income borrowers. The income limits are very low, and usually a home buyer can only qualify for a modest home with these programs. Banks will usually set aside some money for these loans and offer them at a below market rate to eligible borrowers.  The funds are usually available through non profit organizations that they work with. Funds are limited, and when they are used up, the loan is discontinued until funds become available again. These loans are available in limited states