If you are in the market for a Georgia USDA Rural Housing home purchase, then you will want to act fast.

Lenders just received this notice today:

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.

Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because it is not certain when additional funding will be available.

Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita.  Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.

We apologize for any inconvenience this may cause you.

So, if you are in the market for a home that qualifies for rural housing, then now’s the time

I have written about this before, but in a mortgage environment with guidelines continuing to tighten, folks looking to purchase their home in outlying areas, somewhat rural areas, owe it to themselves to consider and USDA Rural Housing mortgage loan.

You see, these loans have two distinct advantages that no other loan product can compare with:

• 100% Financing for the home.  That’s right, no down payment is needed.  So, for a Georgia first time home buyer who has amassed a small savings – a few thousand dollars – may be better served to count that as their reserve funds, and finance 100% of the purchase price, at extremely low interest rates.
• No Monthly MI Payments: Right.  That dreaded PMI that protects the lender against default, but the buyer has to pay for, is not there on a USDA loan.  Too good to be true? You got me.  There is what would correspond to MI, and it is equal to 2% of the loan amount, but much like an FHA mortgage, that 2% is added to the loan amount and financed.  So, on a monthly payment basis, it is nearly painless.

If you are considering buying a property in an outlying county around metro Atlanta, then be sure to check out a USDA mortgage loan, otherwise known as a Rural Housing Loan.

USDA Funds Released – $10 Billion (yes, that’s billion with a B) has been allocated. According the USDA, about 25% have already been used to fund “purchase transactions only” that have been on HOLD since January 9, 2009. When the “dust” settles, money will be released for refi’s.. Not every community qualifies—but if it does, it’s the best thing since sliced bread!.

I agree, it is the best thing since sliced bread, since a USDA loan is 100% financing, at market rates, and has NO monthly Mortgage Insurance (MI).  I just closed one for a young couple who purchased a home in Winder, GA.  They came to closing, and got a check back for nearly all their earnest money.  Nice.