If purchasing a home in a rural area using the USDA Guaranteed Rural Housing mortgage program is in your future, you might want to shift your plans into high gear. The Rural Development national office in Washington, D.C., recently issued a letter to participating lenders stating that funding for the Guaranteed Rural Housing program would most likely be used up by the end of April 2010.
The Guaranteed Rural Housing Program provides 100% mortgage financing to home buyers purchasing homes in designated rural areas. This program is designed to spur housing, and in turn spurring growth, in rural parts of the United States. Much of Texas falls under this program, including parts of Montgomery, Fort Bend, Brazoria, Liberty, and Waller counties.
For more information on the program, you can visit this site: USDA Rural Development Site
It looks as though the program will be continued, but it is not clear when funding will actually be provided. The last thing the government needs is another obstacle to recovering housing markets. In the interim, borrowers will likely have to consider other financing options which may not be as flexible. Most home buyers can choose to utilize FHA loans that will require a 3.5% down payment.
Stay tuned – we will keep you posted on any updates!
