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USDA Mortgage GroupUSDA Mortgage Bill Advances in the Senate
May 14th 2010 – Update on the Bill to Extend the USDA Rural Home Loan Program.
A recent Senate announcement stated that key provisions of the legislation which would keep the program solvent were approved by the Appropriations Committee. The bill now moves onto the Senate floor for further debate. Essentially this bill will increase the USDA guarantee from from the current 2% to 3.5% to insure that the program is self sufficient without any additional costs to the taxpayers.
The USDA Rural Mortgage program has helped countless families across the country purchase homes for little to no money down at competitive interest rates. This program is one of the few remaining mortgage types which is helping to support the recovery of the housing market in Washington and Oregon.
Under the Rural housing Preservation and Stabilization Act the USDA mortgage guarantee fee for a new home purchase would increase from 2% to 3.5% and allow for an annual fee of not more that .5% of the loan balance per year. The bill would also allow these fees to be waived for low to very low income families.
The USDA Home Loan Program provides loan guarantees to private lenders for low and moderate income families who are purchasing homes in rural areas. Borrowers seeking a USDA home loan are must have an income under 115% of the median income for the area, must be able to afford the mortgage payment, and must have reasonable credit scores (typically 620+).
If you are searhcing for a USDA Home Loan in Washington or a USDA Home Loan in Oregon gives us a call today.