As of today, the funds for Fiscal Year 2009 for the USDA Guaranteed Rural Housing program are available in all 50 states!
USDA Rural Development loans are guaranteed by the buyers paying a 2% funding fee but the appropriation of the funds are done by Congressional appropriation. Each year, the funds "end" on September 30 and it typically takes a couple of weeks to get the final appropriation assigned and approved by Congress, as it did this year.
During the time that the funds are "not available", we can still close USDA Rural Housing loans but we cannot get a final Loan Note Guarantee from them. This guarantee is what is required so that the loan is insured by USDA and is another degree of approval. Many companies refuse to close a USDA loan until they have this guarantee so most of us work very hard to get all USDA Loans we have that are at contract closed by September 30!
This program is great for clients looking for 100% financing, including their closing costs, that are purchasing a primary home in an area that qualifies for it. It is quite astounding to many people to see how many areas really DO qualify. If you are buying a primary home, or if you are a Realtor with a client that is buying one, please contact me if the property is located in Florida, Alabama, Georgia, North Carolina, South Carolina or Tennessee - we may be able to get you into a house with ZERO DOWN
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