Friday, July 30, 2010

USDA Funds Available with the Signing of H.R. 4899

Back in March USDA announced it was quickly exhausting funds for the popular Rural Development loan program. This type of mortgage loan offers 100% purchase financing for eligible properties and caters to low income families. Its demand has grown over the last couple of years with the days of 80/20's long gone to the extent that funds would run out halfway into the fiscal year. With many supporters this self sustaining program now has the funding needed to see it through October and hopefully avoid future "droughts". A Guarantee Fee increase from 2% to 3.5% (which can be added into the loan) will help to provide future funding. To offset the fee this loan carries no mortgage insurance and a competitive rate. The bill signed yesterday by President Obama also included funds for military, relief for Haiti, and the oil spill in The Gulf.