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USDA Guaranteed Rural Home Program Changes
May 11th, 2010 | 
Author: I cannot find this in any news reports or on the USDA website, but since we are told by underwriting that this is so, it is. Any new submissions for a USDA Guaranteed Rural Home Loan must be manually underwritten and have a 3.5% guarantee fee instead of the 2% guarantee fee currently (until today) in place.
This is good news, in that an increase in funding fee is much more favorable than the elimination, or at least the suspension, of the program completely.
USDA Guaranteed Rural Home Loans are 100% financing (the 3.5% is actually financed) for homes located outside of the urban growth boundaries of the major metropolitan areas in Oregon. For instance, homes in Cottage Grove, Creswell, Veneta, Junction City, Oakridge, Westfir, Walton are some of the areas in Lane County that qualify.
There are income limits for the Guaranteed Home loan. You can find them here. However, the income limits are quite liberal and many people can qualify for the loan and not have to come up with the down payment.
A word of warning, USDA does not make farm loans. They are used mainly for small towns and cities and do not work well with large acreages and outbuildings. Don’t expect to purchase a 20 acre parcel with a horse barn using USDA funds, it won’t happen.
Contact Me
If you have been thinking about buying a home using the USDA Guarantee program in Lane County, I am standing by ready to help you with the process. You can always call or e-mail to find out what is happening today with the program or check on the Get Started tab above. I am at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. Call me today at 541-342-7576/541-221-3455 or send me an e-mail to discuss options.
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Well, what is and what isn’t are not the same and what the government tells us one day may be different the next:
SFH Origination News
From the National Office in Washington DC
05/12/2010
Fiscal Year 2010 Appropriated Funds – Issuing Conditional Commitments once Appropriated Funds are Exhausted
The purpose of this notice is to recall and void the guidance that was released on May 11, 2010, regarding Fiscal Year 2010 Appropriated Funds – Issuing Conditional Commitments once appropriated funds are exhausted. The guidance provided in the notice will be revised and released within the next 24 to 48 hours. We apologize for any inconvenience this may cause, and reiterate that the guidance provided on May 11, 2010 is hereby void.
We appreciate your continued participation in the Single Family Housing Guaranteed Loan Program. If there are questions regarding this notice please contact our office at 202-720-1452.