The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate and signed into law by President Obama. The Rural Housing Service (RHS) was created in 1994 as a result of the Department of Agriculture Reorganization Act to meet housing and community development needs of rural America. More rural families and individuals may be able to become homeowners with the help of the Rural Housing Service Programs. The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA rural housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no downpayment.
"Many rural families would have been left out in the cold without these guaranteed loans. Increasing the commitment authority will help rural families, support local housing markets, create jobs and generate new tax revenues," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.
"The rural housing program is a good example of the kind of program needed for responsible and qualified home buyers who bring common sense to the housing market," said Golder. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed. "This change will make the program completely self-sufficient," she said.
The legislation was part of H.R. 4899, "The Emergency Supplemental Appropriations Act" that the Senate passed on July 28. The measure increases the Rural Housing Service commitment authority allowing guaranteed loans; previously, RHS has been providing conditional commitments. The RHS is expected to announce new guidelines shortly.
RHS programs are not limited to only rural areas.
http://www.rurdev.usda.gov/oh/housing.htm
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