USDA Rural Development Loans ARE BACK!

As of yesterday, the US House of Representatives passed a new bill (HR 4899) which includes additional funds for the Rural Development Loan Program.  This is HUGE news, as many many of these loans have been put into suspense over the past several months, or have been waiting for "subject to" commitments, which has been keeping them from closing, and not coincidentally, people from moving into their new homes. These additional funds will also be available for consumers looking to purchase new homes, although there is one small change to the previous requirements for qualifying.  People are still eligible for the ever popular 100% financing the USDA RD loan offers, but the up front Funding Fee has been increased from 2% to 3.5%.  This is small potatoes considering that this funding fee can be rolled into the loan amount, so you don't have to pay for anything out of pocket at closing (theoretically). If you have questions about the USDA Rural Development loan, or what properties in Fort Worth or Dallas qualify, don't hesitate to CONTACT US and we will review your situation.  You can also FILL OUT THIS FORM or

USDA Rural Development Loan Funds Exhausted

As of May 3, the Single Family Housing Guaranteed Loan Program (SFHGLP) appropriated funds for fiscal year 2010 have officially been exhausted. Based on a directive issued by the USDA, many mortgage lenders have since released memos informing all originators to increase the USDA funding fee on all SFHGLP loans that had not been issued Conditional Commitments. What does this mean?  Well, with the increase to the USDA funding fee, Rural Development would agree to issue “subject to” Conditional Commitments until Congress votes to appropriate more funds to the program, effectively putting the program in limbo. So is this the end of the insanely popular Rural Development Loan?  Only time will tell, but we will keep you posted as we find out any news.  For the time being, if you have any questions for the USDA, you can call 202-720-1452. As always, if you have any loan questions for us, please don't hesitate to CONTACT US and we will get back to you ASAP!

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 ...

USDA Rural Development Loans Offer 100% Financing For Surrounding Areas of DFW

Over the past several years, the Government and the Mortgage Industry as a whole has continuously tightened the rules and regulations when it comes to buying a home.  It has gotten to the point where even people with stellar credit and a solid borrowing history still need a hefty down payment before they can purchase a new house. Fortunately though, there is a new program available from the United States Department of Agriculture that offers 100% financing for people that live (or are looking to live) in rural areas. Why would they do this?  Is it too good to be true?  Well, long story short, the government offers the option of “zero money down” so that people who live in rural areas (who may have always been renters) can finally have access to affordable mortgages. Consequently, this type of loan is often the best scenario for people who live in the country and want to find a place they can call home.  Another amazing feature of this loan is that 100% of repairs that ...