USDA Rural Housing Financing Drying Up?
Rumors are swirling that USDA Rural Housing Financing is drying up and that lenders will no longer be able to offer this program after April 30th. This would be a huge blow to a housing market that is struggling to rebound, as USDA Rural Housing Financing remains one of the only 100% financing programs still available.
We already saw Wells Fargo exit this market today, and other lenders have put out memos regarding USDA Rural Housing Financing. Most are still accepting applications, but it is expected that many others could follow suit with Wells Fargo in the coming weeks.
This has happened before, and the USDA Rural Housing Financing program has gotten additional funding, and some lenders are taking that stance that this is a yearly occurance and that each year the budget must be worked out with the government. However, I have personally never seen lenders exiting this program. Hopefully, these lenders are correct that USDA Rural Housing Financing will resume this spring after the program runs out of cash.
USDA Rural Housing Financing offers $0 down payment and flexible underwriting requirements to home buyers in rural areas. Many smaller towns also qualify. For more information about this program, please visit our USDA Rural Housing Financing page.
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RJ Baxter First Mortgage Corp
Branch Manager
303-670-0137 (direct)
27902 Meadow Drive, Suite 120
Evergreen, Colorado 80439
