TAG | USDA Mortgage Loans
Due to the drastically increased popularity of the USDA Guaranteed Rural Housing Loan Program, there is a possibility that funding for this program could run dry by the end of April. If funding should run out for this program, there is the additional possibility that no additional funding would be available until the begining of the government’s new fiscal year on October 1st. This means there could be a period of up to 5 months in 2010 that the Guaranteed program will not be available if no additional funding is appropriated. If you are considering using a USDA Guaranteed Loan for a home purchase in the near future, it would be wise to act sooner rather than later pending further developments. We will keep you updated.
Anyone who has applied for a home loan in the past year is probably familiar with some of the changes that have taken place in the mortgage market lately. The implosion of the subprime loan market and ensuing financial crisis has caused a significant tightening of the criteria for getting approved for a home loan. Very few programs are available today for borrowers to purchase a home without a significant down payment.
USDA Home Loans have become the fastest growing mortgage product in the U.S. because of the advantages they offer to home buyers. USDA Loans can only be used to purchase homes, not to refinance unless the home has a USDA loan already. USDA Loans can be used to buy a home with no down payment and no mortgage insurance. There isn’t another mortgage available that offers such great terms for home buyers who aren’t military veterans.
If you are looking to buy a home with zero down, look into a USDA Loan. You could be pleasantly suprised.
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84,000 Families Have Achieved Homeownership Through The Reinvestment and Recovery Act And USDA Loans
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According to USDA Release 0608.09 and Agriculture Deputy Secretary Kathleen Merrigan, 84,021 rural families from throughout the country have become homeowners so far as a result of USDA funding provided by the American Recovery and Reinvestment Act (ARRA). Merrigan made the announcement while standing on the front porch of a Carlisle, Pa., home that Kelly Hench, a mother of five, purchased in April with ARRA funds.
“Homeownership and access to affordable housing are important to maintaining stable communities, and the Obama administration is committed to ensuring that all Americans have the opportunity for a safe, suitable and affordable place to live,” said Merrigan. “This Recovery Act funding has helped people like Kelly Hench and allowed USDA to meet the overwhelming demand from rural families seeking homeownership.”
Shortly after Hench bought her bi-level house in Carlisle, she converted the lower level into bedrooms for herself and the youngest of her five children. The other children all have their own rooms. Hench is renovating the kitchen and preparing to buy new appliances. She is among more than 2,290 rural Pennsylvania residents who have received home loans as a result of Recovery Act funds during FY 2009.
Through Recovery Act funding, USDA Rural Development offers guaranteed and direct single-family-housing USDA loans to eligible rural residents. Down payments are not required for direct and guaranteed loans, and payments for direct loans are based on the borrower’s income. A reasonable credit history is required, and borrowers must have sufficient income to repay the loan. USDA rural loans use strict underwriting standards to assess each borrower’s credit, income and cash flow. As a result, this single-family-housing loan program has a low delinquency and default rate.
The U.S. federal government is slowly extracting itself from the MBS market for home loans, closing out several emergency measures put into place in the throes of distress last year to prevent a collapse of mortgage finance.
According to a recent WSJ online article, The Federal Reserve’s $1.25 trillion program to purchase mortgage-backed securities, considered the most critical support, will draw to a close in the first quarter of 2010. Fannie Mae, Freddie Mac and Ginnie Mae will then be without a government buyer of last resort for their home loans for the first time since the mid-1990s and will have to rely solely on private investors.
Simply put, this means that interest rates can not remain at their present levels for much longer. If you are on still on the fence about a refinance or home purchase, the time to move is now. Learn more about Home Mortgage Loans, FHA Loans, USDA Loans, VA Loans and Jumbo Loans and Conventional Loans at www.loans-101.com. Blog Catalog
USDA Home Loans are increasing in popularity at an accelerated rate.
