All of the lenders in our area e-mailed all of the real estate agents last week about the potential for Rural Development loans to very soon deplete their funding.
In the Hutchinson, MN and surrounding area, the RD loans make up about 60% of all the first time homebuyers financing. So, there is real reason for concern.
In talking to many lenders over the last week, I am getting a real mixed signal. Some feel that there isn't any question that the Federal Government will allocate more funding for Rural Development, while others are quite skeptical.
Having been in the real estate business since 1975, I have seen these programs run out of money before. When that happens, we as real estate agents need to get creative and help our buyers find other sources for financing that are available. FHA is always a good option for first time buyers.
So, here we are, just waiting to see what happens. Seems like we have done a lot of "wait and see" in the real estate business during the last couple of years! That's what makes our business so exciting!