Due to an overwhelming increase in popularity in the USDA Rural Development program listed here: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program , the USDA Secretary has recently authorized an additional 1.1 Billion of funding to be moved to the Section 502 Guaranteed Loan Program. Apparently, up to 50 lenders are being added to offer the USDA program each month and volume has doubled, according to a Rural Development press release issued July 3oth, 2008.
This is great news for those interested in utilizing the USDA Program, and it is great that the USDA is recognizing the demand for their program. As always, one should check the income guidelines Income Eligibility Test and property guidelines to make sure they qualify for the USDA program http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do , as well as speaking with a mortgage professional authorized to offer the USDA program to make sure you can qualify.
Michael Byrne
Michael Byrne
Mortgage Specialist
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This is a fantastic program. I closed 4 of these in July.
Travis
Thanks for sharing
It is a great program for those who qualify for it. Surprisingly, even in New Jersey, a fair amount of the area qualifies the "rural" program.
Not sure this is going to be enough with the increased demand. What do you think?
I think it will be tight, Fred. The one interesting thing I took from this is that unlike the FHA or VA loan programs, the USDA has an annual allotment of funds. Similar to a state bond money issue whereas once those funds are depleted, that's it.