Update on USDA Rural Development Loan Program
July 16, 2010
While we wait for HR 4899 to pass and be signed into law, the president’s budget is going through mark up. Last year the USDA 502 Guaranteed program was allocated 12 billion dollars, the Senate Appropriations Committee is recommending 24 billion dollars for the 2011 fiscal year.
The bill includes $2.768 billion in discretionary budget authority for rural development programs, which is a decrease of $168 million from the fiscal year 2010 and an increase of $85 million above the President’s request.
Increases are provided for guaranteed single family housing loans. A fee increase is authorized which will allow the Agency to provide $24 billion in new loans at no cost to the government.
In the face of the recession Rural Development’s loan programs have been the principle source of home financing in rural areas.
If you would like more information regarding USDA 100% financing Rural Devolopment loans please contact Mike Morgan at Peoples Mortgage. 520.954.7686.
