Forget the USDA Program; It's Broke!

Yes, the rumors are absolutely true. Straight from the desk of the USDA is that their rural development housing loan (you know, the only other mainstream 100% financing product besides VA) is likely to run out of money by April and they are warning lenders to stop issuing loans. For the USDA Rural Dev program to run out of money isn't uncommon as it usually happens around October every year and so long as they have a financing commitment from you and me (i.e. The Government), the program keeps on lending. What's new is that the program is broke in APRIL!

It's cash for clunkers all over again. The government's incentives of first time home buyer tax credits and low mortgage interest rates were so successful, they either forgot or ignored to fund one of the financing programs that was actually stimulating real estate sales.

If you're a home buyer, the NCHFA's programs are still available to you however the interest rate is above the typical market rates and I wold expect that program to run out of money soon as well. After all, with USDA gone, the HomeFirst DPA program is probably going to have a substantial increase in applicants over the next few weeks. The VA Vendee program is also still an option, allowing anyone (veteran or not) to take advantage of a VA loan so long as they are purchasing a VA (Veterans Administration) foreclosure.

Agents and lenders, get on the phone today or email the Senate members who are responsible for funding this program. The members are:

• Senator Byron Dorgan
• Senator Tim Johnson
• Senator Thad Cochran

Let them know your thoughts on how they have underfunded this program and what they intend to do about it.

Charlotte NC Homes For Sale