Real Estate Blog - Ch…Ch…Ch….Ch….Changes – To USDA Guaranteed Rural Housing Program

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Ch…Ch…Ch….Ch….Changes – To USDA Guaranteed Rural Housing Program

So, do you want the good news or the bad news first? Presuming you are like many who prefer to get the bad news out of the way first, the bad news is USDA Rural Housing programs have already depleted their available funds until Congress reallocates additional funds to them. Stage two of the bad news is the decision to be made on the proposed changes to the income calculations for the USDA Guaranteed Rural Housing program has been postponed until March 20, 2009 (or thereabouts). These proposed changes are:

Current base income limit for all non-high cost counties =

1 Person	2 Person	3 Person	4 Person	5 Person	6 Person	7 Person	8 Person
49,550	56,600	63,700	70,750	76,400	82,050	87,750	93,400

Proposed new income limit structure for non-high cost counties income limits would =

1-4 Person	5-8 Person
70,750	93,400

So, the good news is:

•a) The proposed new income guidelines are still on the table, and approval of them would make more people eligible for this program that could use a great 100% program with no mortgage insurance

•b) Although most lenders will not fund USDA GRH loans until Congress reallocates funds to this program, we still have a source that WILL fund these loans (right now, today!), confident the allocation will come through and they'll just hold these loans in their portfolio until they are able to sell them. So, if you are/were in the midst of a transaction and had the plug pulled on your funding for a transaction in Oregon or California, call me!

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 01/14/2009 12:49 PM

Comments (12)

usda guaranteed rural housing, usda rural housing, 100 financing, no down payment, first time homebuyer, southern oregon, rogue valley

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12 Comments on Ch…Ch…Ch….Ch….Changes – To USDA Guaranteed Rural Housing Program

JAN

Karen, going to two tiers would be a positive change I would think. Bring more into eligibility. Thanks for the info

Jay

JAN

Hi Jay - I agree going to two tiers would defininitely open this program up to those seeking financing that are considered "workforce housing". But, with such a huge increase in demand for this program recently, do you think this would cause a further strain on this currently underfunded program?

karen, you are such a valuable source of information when I comes to loans especailly affordable loans

Hi Krista - Thanks for your kind words!

Karen, you make a good point about being under funded. Although I think some of the issues deal with the timing of budgets and being under "continuing resolutions". Politics, oh my!

Jay

Jay - Our industry has become subject to politics like not other time (in my memory anyway), don't you think? Thanks for stopping by.

Karen - Good news about the limits. I also know of several lenders who are funding now, knowing taht funds will be released. This seems to happen every year.

JAN

Hi Larry - I just explained the same to a gentleman from Tennessee that I just referred to our fellow ARer Rich Dansereau. Thanks for stopping by.

Karen, not only is the industry subject to politics like no other time, they own large chunks of it. Frightens me when I pause to think about this.

Jay

Hi Jay - It's always been this way. Being a woman working in banking in the early 80's my experience has been that banking had a distinctive "good old boy club" that ran throughout thee industry. There may have been some "shift changing" since the 80's, but it's the same old thing. That being said, do we need to accept this? Absolutely not!

JAN

Karen, Thanks for the info. I hope the proposed changes to the income structure are approved along with a very large allocation of funds.

FEB

George - From your keyboard to His ears! This program is beneficial not only in helping the entry-level buyer, but those that want/need to move up and clear some of the inventory out.

P.S. I hear Bette Midler everytime I see your signature.

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