According to the National Association of REALTORS, the USDA will once again have funding for their guaranteed loan program:
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Thousands of Rural Home Buyers Aided by Passage of Housing Funding Measure
Washington, July 28, 2010
The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama.
The National Association of Realtors® has vigorously lobbied to restore funding for the rural program since last March, and hailed this development as a great victory for rural home buyers.
“This is going to be a great lift for thousands of rural home buyers who need to close on their home purchases before Sept. 30 to take advantage of the home buyer tax credit,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Many rural families would have been left out in the cold without these guaranteed loans. Increasing the commitment authority will help rural families, support local housing markets, create jobs and generate new tax revenues,” Golder said.
“The rural housing program is a good example of the kind of program needed for responsible and qualified home buyers who bring common sense to the housing market,” said Golder. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed. “This change will make the program completely self-sufficient,” she said.
Im hearing that even though the funding will be restored, it can take a month or two before local USDA will have the funds available. Can you confirm this. I can’t deal with two more months stress of waiting to close.
It is likely to take some time before the money runs through the system so I wouldn’t expect this stuff to be immediately available. A month or two sounds about right but the important thing is to keep in regular contact with your loan officer and understand that with any big program like this that some things just take time.
Rural home loans cna be a huge help to many. I hope this program got worked out. We need all the finnacing sources we can get.
Russ Fielden
Broker-In-Charge
Southern Coast Realty