Georgia USDA Loans

As many people are aware, the USDA offers an outstanding loan product to help low to moderate income borrowers in in rural areas of Georgia to purchase homes.  The product is so good, that in the last 18 months, mortgage companies have flocked to this loan to help their clients.  

Unfortunately, the available funds that the USDA had for this program are quickly drying up!  The USDA has announced effective the end of April, they would be out of money to continue this program.

A quick recap on Georgia USDA loans:

USDA Loans - The Good

The program offers up to 102% LTV financing, no PMI, and even allows you to include cosmetic repairs into the purchase price (provided you stay under the loan-to-value).  Perhaps best yet, it is available to all borrowers who income qualify, and whom have a 620 credit score or better.

What are the rates like you ask...?  They range between a 4.75 and 5.25 at wholesale.  Unbelievably good!

There is really nothing close to this product out there.

USDA Loans - The Bad

Income restriction -- it is possible to make too much.  It's not overly restrictive though, as with a family of 4, you can earn up to 82k in most parts of Georgia.

Slow to underwrite.

Geographic areas (only rural) -- this isn't that bad, as the vast majority of Georgia qualifies outside of the Atlanta metro area.

Yep...you get the picture.  There really isn't any truly bad things about USDA loans!

Georgia  USDA -- An Uncertain Future??

In the next 3-4 weeks, many lenders will cease writing USDA loans.  Wells Fargo has already stopped as of 3/15/2010.  

This is extremely distressing to me personally, as I feel this loan product allows me to help many Georgia borrowers who otherwise would be forced to rent.  My own bank has stopped doing the loans, and many other large banks.  Fortunately there are still a handful that are underwriting these, so if you are interested in the product, now is your time!

We can only hope that the USDA gets additional funding from the government and is able to continue offering their Rural Development loan.