Purchasing | NC FHA Expert

USDA Rural Development Loans and Liquid Assets

Some People are Better Savers Than Others

Some borrower’s we talk to have ALWAYS been good savers, and they are drawn to the USDA Rural Development Home Loan program because it allows them to keep their savings (it’s a 100%, NO downpayment required loan!)!

There use to be a rule that said you could not have more than $5000 left in liquid assets after closing to qualify for a USDA Home Loan, thankfully that is no longer the case!

You can even make a downpayment with a USDA Home Loan (and we encourage people who qualify to use the USDA Home Loan program as opposed to FHA because it’s CHEAPER!)!

There’s just one little catch – you can not have more than 20% of the home’s purchase price left over after closing in liquid assets. This means that if you purchased a $100,000 house, you can not have more than $20,000 left over after closing.

If you have questions about purchasing a home in NC using the USDA Rural Development Home Loan, call us for pre-qualification! Steve and Eleanor Thorne, 919-649-5058 – we are USDA Mortgage Loan Experts, and we have the lowest rates!!

FHA Started Because of The Great Depression…

Housing is the most important part of getting the Economy back in shape – (according to many of the guys that met for The Global Economic Summit in Davos). Keeping that in mind, it’s important to remember how FHA and the Government Backed “Mortgage” Programs might be able to help with our housing issues, and hopefully fix them.

When the Great Depression hit in 1929, millions of Americ FHA Started in the Great Depression ans began to loose their homes to foreclosure. Short term mortgages (3-5 years) and balloon payments were common. The banking crisis during the 1930s forced banks to call in loans, and there were no refinancing options for the average homeowner.

As a result the federal banking system was restructured and in 1934 The National Housing Act was passed. This legislation created the Federal Housing Administration (FHA) with the intent to regulate interest rates and mortgage terms on the loans that it insured. The agency purchased mortgages and insured them, allowing banks to turn around and make another loan without putting out substantial capital of its own.

Today, we have some of the same problems they had during The Great Depression, and that’s one of the reasons the Obama administration is looking at new ways to use FHA mortgage loans to help with the current crisis! With these changes, many “vague” statements on the Internet about FHA mortgage loans could be wrong… so if you are considering purchasing a home in Raleigh, or refinancing in Cary, NC - please call Steve and Eleanor Thorne at Corporate Investors Mortgage Group, Inc to get the most up todate information! 919-649-5058