Georgia is about to see a very good and welcome loan program come back – USDA home loans.
USDA Rural Housing loans are about the only option for 100% financing, but this year the program was so popular that the government agency ran out of funding quite early in the year. But, a bill has passed Congress and will be signed soon by the president that authorizes more funding.
The details appeared in on the WSJ blog, and my friend, Sue, who is a loan officer in Florida was quoted.
The Funding Fee will rise from 2% to 3.5%. That is the fee normally rolled into the loan that insures the loan, much like PMI insures a conventional high Loan-to-Value mortgage. Otherwise, everything else remains the same on these deals – the property being purchases must be considered ‘rural’, and the household income cannot exceed 115% of the county median income.
Where income is concerned, just call me if you are interested in applying for a USDA loan in Georgia, since it is easier to look the medians and exceptions than to calculate it.
So, good news for homeowners buying outside the metro areas – USDA loans are back as a financing option.