Second Chance for USDA Rural Development Loans?

Considered to be one of the only remaining options for 100% home financing, the USDA Rural Development Loan has recently been targeted as a dying commodity.  In fact, just last month the USDA reported that the funding for their Guaranteed Loan Program would likely be exhausted by the end of April.  This was unfortunate news, considering that while they aren’t necessarily for everyone in DFW, these loans provided many people on the outskirts of the Metroplex with an option for 0% down payment and no mortgage insurance.

Fortunately, though, there may be new life being breathed into the program as we speak.  Just earlier this week, Shelley Moore Capito (R-W.Va) introduced a new bill that would keep the Rural Housing loan guarantee program afloat, at least for a little while.  Capito, who is the Ranking Republican Member of the House Financial Services Subcommittee on Housing and Community Opportunity, introduced the legislation (called H.R. 5003, The Rural Housing Improvement Act) to the House Financial Services Committee on Wednesday.  The bill is being introduced in an effort to ensure that responsible families in rural communities continue to have access to the credit market to finance their homes.

“I have received hundreds of letters, emails and calls from my constituents, including home buyers and sellers, who are concerned that the 502 loan guarantee program will soon run out of funds,” said Capito.  “My legislation would continue to assist thousands of responsible, low to moderate income (people) who otherwise wouldn’t have access to home ownership.” See the official press release here.

There is no word as of yet how the bill was recieved, but we will definitely keep you posted as soon as we hear anything.  Let’s hope these loans stay available to the consumers!  What do YOU think?

If you have any questions about the USDA RD Loan (or just want to talk about mortgages with someone) don’t hesitate to CONTACT US and we will get back to you asap!

3 Comments for this entry

• 

  limewire

  April 30th, 2010 on 8:05 am

  wow fun info bro.
• 

  pell grant

  May 6th, 2010 on 3:05 am

  Great information! I’ve been looking for something like this for a while now. Thanks!
• 

  Amy

  June 4th, 2010 on 3:04 am

  wow fun info bro.

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