Rural Housing | NC FHA Expert

USDA Gets Cash From House -Come on Senate!

GOOD NEWS! The US House Finance Committee approved a measure to fund the U.S. Department of Agriculture (USDA) Rural Housing Service Loan Guarantee Program (section 502 Loans).

Say What? Have you been reading that USDA is out of money? Well, it’s not COMPLETELY out -but it’s close. In our part of North Carolina it’s taking about 12 days to get your loan underwritten by USDA…. they sent out a message this week that they thought they would be out of cash by May 7th. This means that if your loan is not ALREADY submitted to USDA, then you would be SOL (So out of Luck).

So the fact that this program will likely get more money is GREAT NEWS! What will be even better, is if Congress can pass this bill by the end of next week – assuming it looks like it will pass, then USDA could continue issuing “Conditional Commitments.”

If, If, IF they continue issuing “Conditional Commitments” after next week – we will be able to continuing funding – even if Congress takes another 2 or 3 weeks to get it all passed.

The HIC-UP comes when there’s uncertainty about weather Congress would change the program. The version passed by the House Finance Committee does NOT change the current program. To view the Bill, click here - H.R. 5017, “Rural Housing Preservation and Stabilization Act of 2010,” – Rep. Paul Kanjorksi (D-PA)

We will keep monitoring this. If you have questions about USDA Home Loan financing, and you are purchasing in NC – please call Steve and Eleanor Thorne, 919-649-5058 Connect With Us on Facebook,

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North Carolina USDA Mortgage Loans Updated 2/2012

In NC, we have some big cities… but we get rural fast! I can’t tell you how many people, dispite the cost of gas, who say, “I’m just lookin’ for some land!” or “I can’t stand those little ‘Barbie Doll’ houses sitting right next to each other!”

Well, if you’re looking to buy a rural home, we can help you learn about the benefits and features of purchasing a home by using the USDA Guaranteed Rural Home Loan.

But if you’re looking to finance a horse farm, you might want to read this first!

The USDA Guaranteed Rural Home Loan program was created to help low to moderate income families buy homes in designated rural areas with 100% financing. It really provides people with the most cost efficient way to finance a home

Beginning in 2012, USDA charges an Upfront Mortgage Insurance / PMI / Guarantee fee, and an Annual Insurance Fee that is collected Monthly. The new upfront fee (it’s their form of mortgage insurance) is 2%, and this can be added to the loan amount, or paid by someone else. So if you are borrowing $100,000 you will have your principal and interest payment calculated at $102,000. In addition to that, there’s an annual Insurance fee of .3% which is collected monthly. We can give you some more information about the new USDA PMI Charges here.

There are income limits, and in Wake County a family of four can not make more than $91,850.

The loans are designed for RURAL AREAS… but all of Johnston County, Chatham County and much of the Western Wake County area are open to the Program.

To See Homes That Qualify For this 100% Financing click here!

If you have questions about purchasing a home with USDA in NC, please call Steve and Eleanor Thorne, NC Mortgage Banker at 919-649-5058