As of 4/15/2010 USDA has less than 2.0 Billion dollars left to fund in home loans. This is a HUGE issue for folks who waited until the last minute to purchase a home, thinking they could a) get a better deal and b) use USDA Home Loan financing (no money down). At the current rate – we will be out of funds before May 1, 2010.
There are TWO major issues you should know if you are STILL wanting to write a contract and get your Tax Dollars.
- It’s going to be HARD to get a seller to accept your contract. It currently takes 2 weeks at USDA underwriting to get a loan approved. So if you write your contract this weekend, even if we could get an appraisal in ONE DAY – they would be out of funds before you could get submitted!
But let’s assume that you get /or have a contract that’s accepted prior to the end of April… now you need to close by the end of June. Here’s the rest of what you should know:
- The National Association of Home Builders are going to Washington next week. They are NOT asking for an additional Tax Credit… they are asking for MORE USDA dollars. You see, the way this deadline approached left many people feeling that they were going to change the guidelines for USDA Home Loans. The NAHB is asking that they leave it in place with no guideline changes – because the default rates on these loans are LOW.
The Associated Press Said today:
Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee, and four other members of his panel wrote letters to Agriculture Secretary Tom Vilsack last month supporting the program and proposing immediate funding options.
Waiting until the next fiscal year to replenish the program would mean shutting it down for five months. And proponents say that would hurt people who could not get a conventional mortgage.
We agree – and suggest that you contact your Senators and Legislators and ask them for more funds… we certainly have.
If you are in a contract or trying to get in a contract using USDA Home Loan Funds… call us. We will give you straight answers, and work to solve your problems. There are other solutions. Steve and Eleanor Thorne, Mortgage Banker in Cary 919-649-5058
I am in the same situation as probably many buyers are. My contract was completed just days after funding ran out for Rural Development leaving me in loan limbo. If more funding is not given to the program there is little chance that I will be able to complete my first home purchace. Being a single parent saving up thousands of dollars for a downpayment is not an option. I hope they get the situation sorted out quickly because there is nothing worse than being approved for something you can not have because of lack of funding.
The governement need’s to help fulfil the American dream, to own a home- especially since they have not tackled Fanny Mae and Freddy Mac. We are not able to afford our rent once we retire, or start an auto repair business on rental property for example, so need own place. The gov’t needs to consider those in the process, at least, to complete their loans.