Posted on 07/22/2010 10:22:45 AM PDT by Lorianne
http://freerepublic.com/focus/f-bloggers/2556897/posts
Georgia gets another $30M for home loans http://www.effinghamherald.net/news/article/11046/
http://www.freerepublic.com/focus/f-news/2555580/posts
USDA Rural Development’s direct loan program has many positive features including 100 percent financing and low-interest rates. House payments are based on household income. The program also has built in provisions, for example, so that down the line, if someone loses their job, mortgage payments can be deferred and rolled into the end of the loan. This provision is only available to Rural Development borrowers after the loan has closed and isn’t available to families that have homes from other lenders.
Just a guess but I’d say most of our congress people have these loans on their 2nd and 3rd homes.
The same stuff that got us in trouble a few years ago. Apparently learning has NOT occurred!
For a bunch of smart people, govt people sure do keep doing dumb things over and over again.
They used to be easier to obtain....not so much anymore. Guidelines are tighter for both the borrower and the property. In addition, I believe that there may be a certain minimum credit score now required.
Especially when you consider that many people miss their first monthly payment. That alone should tell them something but they won’t listen. We’re going down the same road again and is ain’t lookin good.
Isn’t the major reason we are in a financial crisis now due to Clinton forcing banks to make the same kinds of loans to people who couldn’t afford the mortgages?
I guess they think that making the same mistake again somehow corrects the mistake from the first time?
When I applied for a home construction loan in 1982, I had to have 25% of the loan I was applying for and a job that earned enough to pay for the loan or the banks wouldn’t even talk to me. It should still be that way.
Program practically guarantees the former private farms will NOT be producers of food. Failed farmers will NOT be replaced by other farmers.
Sounds like a food production reduction program.
My niece and her husband have great credit but no downpayment (he is disabled and they live on her income). The applied and qualified for $250,000 loan (USDA) for new home on 5 acres. They worked with the approved contractor and had everything in place for the home to be built for under $250k.
The last step was to get an appraisal and the gubment in all their wisdom got an appraiser from 200 miles away who got comps from the area they were building (1) and two comps from the some of the highest property value areas in the state.
The appraisal came in $45000 higher than they were going to have to pay. The result - they were denied the loan because it came in too high...even though the loan was under the limit.
Someone needs to help me understand why it would be bad for you to make a loan on a property that was worth $45000 more than what you were loaning on?
And these are the people that will be soon running our health care. God help us!
Sounds like a food production reduction program.
It's like a less bloody (thus far) path to Zimbabwe North.
“They used to be easier to obtain....not so much anymore. Guidelines are tighter for both the borrower and the property. In addition, I believe that there may be a certain minimum credit score now required.”
Ah but as it points out at the HUB site with a USDA loan you don’t need a credit score.
ping
http://www.usdaloanapproval.com/usda_loan_guidelines_index.html
I'm pretty sure that the individual banks who deal with USDA rural housing loans can still place their own guidelines on.
“I’m pretty sure that the individual banks who deal with USDA rural housing loans can still place their own guidelines on. “
Why would they need to? The loan is backed by the gov’t.
Plus if a bank agrees to take a USDA loan they have to agree to the USDA terms
nice uh> No or bad credit score? No problem
I’m not an expert on this, but I think even though the loan is backed by the Government, there are buy back provisions to the banks who originated the loans. Creating additional guidelines and requirements may be their way of keeping buy backs to a minimum.
I get what you’re angry at though.
The problem with mortgage loans was really not the fact that subprime loans were available to borrowers. Rather, these loans were packaged and sold on the secondary market as prime products (which included Fannie Mae and Freddie Mac).
Because of Government intervention, subprime loans no longer exist. Instead, all borrowers must go through a nightmare of guidelines and procedures in order to get their loans. Consequentially, most borrowers cannot get mortgages today, which means the housing market will continue to sink.
Article from 2 years ago:
Home Buyers Turn to USDA for Mortgages
Agency Program Backs Loans to Aid Rural Development; No Money Down — Even Now
http://online.wsj.com/article/SB122937640286608173.html?mod=googlenews_wsj
You may be right but it seems strange that at their web site they can tout the advantages of a USDA loan and then require all the things they said they didn’t require.
I hope you are right and we aren’t still giving loans to people who can’t pay.
I also question why the USDA would be in the home loan business to the extent it is.
between the loans and the money we continue to give to “ black farmers” this is a joke
the USDA gas given more reparations to more black farmers than there are black farmers
If you pay $500/mo for 15 yrs that's $90,000. Am I reading this wrong or do they give you 15 yrs to pay it back, making payments not EVERY month but whenever you can?
Nope, you read it correctly.
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