I just received an email from our Sr. loan officer, Joan Duggan of First Home Mortgage stating that RURAL HOUSING has run out of money at the 2% funding fee. Why you ask, well, this program has doubled in size since the stimulus program, but, it seems to be their own victim, thanks to the generous terms that have been offered to its borrowers- namely no downpayment and no Mortgage Insurance premium. Unlike the FHA requiring 3.5% down and Mortgage Insurance premium.
The programs are offered by local lenders and to be eligible you need to live in a community with less than 20,000 residents and live outside of a metropolitan area.
Now, going forward if the Senate approves the refunding of Rural Development, the funding fee will be increasing to 3.5%!
If you have any questions about Rural Development or to see if your community is eligible-call me Cheryl Cahill, Cross Real Estate, 508-369-3809. Servicing all of the Bristol County area. For all your loan questions call Joan Duggan, Sr. loan officer, First Home Mortgage 781-561-5898