Real Estate Blog - Yes, USDA Guaranteed Rural Development Loans Can STILL Be Funded in 2009!

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Yes, USDA Guaranteed Rural Development Loans Can STILL Be Funded in 2009!

A notification came out this week about the USDA Rural Development program having received such overwhelming attention lately, they are already almost out of funds only a week in to 2009, and expect to have these funds depleted before the end of this week. First response was "Oh Bummer!... this will prevent Joe, Sally, Fred Borrowers from being able to buy the homes they are in negotiations on in Southern Oregon and California", as this program has been a great tool for the first time home buyer with no down payment, but it turns out that is not the case. Thank goodness, this time I won't have to run around like a chicken with my head cutoff....or as we commonly see in Ashland, Lincoln.

Headless Lincoln, Lithia Park, Ashland Oregon, photo courtesy of flickr.com

Although many banks will not be funding these loans until Congress reallocates additional funding to USDA, I am happy to still be able to continue along doing business as usual, with no pause in my source in the funding of the USDA Guaranteed Rural Housing loans. So, if you are a buyer using this program (or a Realtor representing one), do not automatically assume your deal is dead if your lender tells you USDA Rural Development is not funding these loans - there may be a way to still get your transaction closed on this loan program. Call me if you are purchasing in Oregon or California and planned to use this program, as it still may be available to you! Homes like many in Ashland Oregon, priced below $215,000.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com Serving Southern Oregon and California home buyers for 25 years

Karen Cooper - OR|CA Mortgage Consultant - www.Quality4Loans.com
Providing high Quality, Professional, Ethical service to Oregon and California home buyers and owners since 1983. Whether you are taking out your first home loan or your fiftieth, for your home, your second home or for investment, put my knowledge and expertise to work for you.

Posted by Karen Cooper-Mtg Banker|Broker Ashland|Medford on 01/07/2009 04:21 PM

Comments (6)

ashland, oregon, rogue valley, southern oregon, usda guaranteed rural housing, usda rural housing

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6 Comments on Yes, USDA Guaranteed Rural Development Loans Can STILL Be Funded in 2009!

JAN

How does Carlsbad qualify for this loan? I know Whitewater does, what about Banning? What is the timeline for closing, and any other pertinent info on this loan.

This is a good product for my area.

JAN

Hi Kathy - Unfortunately, Carlsbad is not within the eligible areas for these rural programs - too populated. http://eligibility.sc.egov.usda.gov/eligibility/eligibilityAction.do;jsessionid=06AECFEA77A83E2B7A2961144FFEDD9A

There are many areas in the vicinity that are, though. I typically ask for 45 day escrows on these, but have one in process right now that will make closing in under 30 days. I will be asking for 60 day escrows now, though, with the pick up in volume I expect to see since so many banks/lenders have discontinued their funding on this program...I expect my source's pipeline to expand and turn-times slow down. Then, if we are able to close earlier we can, but expectations will be realistic.

Thanks for stopping by!

FEB

Your blog intrigued me. Just today I learned about the USDA Rural Development loans for low income first time home buyers. My daughter was raised in Ashland, graduated college and now works downtown. She rents an apartment and walks to work. She'd like to some year soon buy a house now that she is engaged to be married. Her fiance also works in Ashland. They are investigating the Rice Park Project (part of Verde Village). The Rice Park qualified couples are being offered USDA Rural Development loans. My daughter isn't sure she can put in the time committment of a year to help build these homes. Can she and her fiance get a USDA Rural Development loan for an already built home? (No downpayment, low interest rates). I'm pretty sure they'd qualify for the Ashland Affordable Home Program's criteria. What would be the restrictions if they look for a house for sale that might qualify for the USDA Rural Development loan?

Thank you for your time,

Cathy

Hi Cathy - Yes indeed, the USDA GRH program may be used for existing homes in addition to newly constructed. There are restrictions on manufactured homes, though. The income guidelines may change, bot for now these are the same. http://activerain.com/blogsview/881608/ChChChChChanges-To-USDA-Guaranteed-Rural-Housing-ProgramThe hours requirement for the RVCDC Self-Help program can be prohibitive for the full-time employed, but if they can work that issue out garnering help from family and friends, the self-help program can be a fabulous opportunity for the low-to-very low income home buyer.

Thank you for stopping by, and please don't hesitate to call me at 608-6003 if you or your daughter and her fiance have further questions.

MAY

Hello,

I'm interested in findingnout if I would qualify for this type of home loan. I'm a first time buyer and live in Klamath Falls, Oregon, I,ve looked at the guidelinezs for income and I fit into that, so can you help me to figure this out? And also who I might hook up with to us as an real estate agent on this side of the Cascades. Thank you for your time and any info.

Sincerely,

Susie O'Larick

Hi Susie - Te USDA Guaranteed Rural Housing loan is a great program! I'd love to run through the details with you and talk to you about Realtor contacts in your area if you'd like to contact me. Just call me at (541)608-6003, or click the e-mail me button at the top right side of this page.

Thanks for stopping by.

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