by First Option Mortgage
22. September 2010 16:21
USDA Funding
There has been a lot of talk about how USDA is consistently up and down in terms of funding. A strong feeling that USDA could run out of money all together has been brought to the attention of the U.S. government. There is good news on the horizon for those of you that live in more rural areas of the country and qualify for USDA loans.
In April, the House Financial Services Committee voted unanimously to approve HR 5017 – the Rural Housing Preservation and Stabilization Act of 2010. The bill is designed to ensure funding for homeowners who want to get a USDA loan. Under the new bill, lenders will pay up to a 4 percent premium for the guarantee at the time of the funding of the loan which will then enable the financing of the program to be self sustaining over time. For the Fiscal Year in 2010, the bill authorizes up to $30 billion.
UDSA loans are extremely popular with those who qualify, thanks to their 100% financing and no mortgage insurance. USDA has nearly tripled in popularity from last year, so it is important that you call First Option Mortgage as soon as possible in order to secure your USDA loan before time runs out!