You've heard it here before--this product, sponsored by USDA Rural Development, allows borrowers to get 100% financing at a low fixed interest rate if the property is in designated rural areas--which aren't limited to the back of beyond. Property just outside city limits is often considered rural for the purposes of geting these loans. But you may have to hurry.
According to ForexHound, the number of home loans guaranteed by the USDA ballooned to nearly 120,000 in the first nine months of 2009, up from roughly 35,000 in all of 2007. But given the amount of development in outskirts all over the US, fewer areas are truly rural and once the population is sufficient they will be taken off the rolls.
Bank Saying No to USDA
One of the largest banks in America is discontuing rural housing mortgages, and it may not be the only one. With the possibility of these mortgages going away and the discontinuence of the first time home buyer credit in November, low-to-moderate income home buyers need to move very fast. if you haven't called your bank, do it now. Get approved, not just prequalified--you want to be ready to pull the trigger as soon as you find a house.
