Where Did Rural Development Home Loans Go?

Some may be wondering what happened to Rural Development (RD) loans…

RD loans provide 100% financing at reasonable interest rates for buyers looking in specific rural areas.

Funding for USDA Rural Development loans ran out earlier this year. Funds usually run out early each year, since this is one of the only 100% financing loan programs available to borrowers. Congress is working to make some changes to the funding of this program, so that funds won’t run out (the program would end up being similar to FHA or VA, where there is a percentage funding fee paid added to the loan amount at closing).

This is what has been happening the past few months:

The House passed the Senate version of the bill, but they added an amendment for additional funding. The Senate voted last week to invoke Cloture, stop the filibustering, and accept the House version of the bill, but that vote fell short with 46 of the 60 votes needed.

So…the bill is back in the House, and the action reverts to them (the House).

I will post any new developments as they happen.

Ohio Housing Finance Agency has revised interest rates for first time homebuyers - great rates, great programs!

4.75% for loans without 2.5% assistance grant
5.25% for loans with 2.5% assistance grant
4.50% for Ohio Heroes without 2.5% assistance grant
5.00% for Ohio Heroes with 2.5% assistance grant
4.75% for Grant for Grads 2.5% assistance grant

This is a 30 year fixed rate. FHA/VA/USDA-RD loans are eligible. Effective 7/8/2010.

Please contact me for specific program details. Call me at (513) 520-6044 or email: bahale1@gmail.com

Tax Credit Extension

The tax credit extending the date to close a purchase transaction has passed Congress. Homebuyers must have been under a fully executed purchase contract on or before April 30, 2010 to qualify for the tax credit. President Obama is expected to sign this measure later this week.