| St Louis Home Mortgage Reports No USDA Loans For Home Buyers |
| Articles - Mortgage |
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Once upon a time, their existed a federal mortgage program from the United States Department of Agriculture that would guarantee low down payments, no down payments and low interest rates for rural home buyers.
Once upon a time, their existed a federal mortgage program from the United States Department of Agriculture that would guarantee low down payments, no down payments and low interest rates for rural home buyers. There have been tens-of-thousands of consumers who have placed high hopes of moving into the home of their dreams with a very good, competitive St Louis home mortgage loan. This has been a refreshing notion considering the more stringent lending guidelines in place. Recent data regarding the USDA programs shows that in 2006, they backed approximately 31,000 loans worth about $3 billion dollars. This large number grew to an astounding 133,000 loans now worth $16.2 billion in 2009. What about qualifications for this program? The standards for qualifying for these home loans were rather tight and the default rates were far better than the FHA which was good news according to St Louis mortgage experts. Now for the bad news: This program was never meant to handle that many St Louis loans and due to this run on this stimulus package, they ran out of money. Capitol Hill recently passed a new bill that would allow them to appropriate more funding towards the USDA program so that more homeowners can continue to benefit. Another bill was also passed by the Senate Appropriations Committee sponsored by Senator Michael Bennet. But even though bills have been passed to keep this program funding new mortgages, there are many who still cannot get a St Louis home loan from the USDA. So, with all St Louis finance paperwork completed, potential borrowers nationwide are awaiting any news from Washington in regards to when they will be more funding available. The good news is that it was announced that the tax credit has been extended till September 30th which may give these consumers the needed time to close. Although these appropriation bills are expected to be signed and passed, it still remains uncertain when these monies will be available which may present a big problem for the home buyer tax credit applicants. With the September 30th deadline looming on the horizon, these mortgage applicants are all but dependent on getting one of these USDA loans and hope the funding will start soon. Another problem that hovers over these consumers is that banks are not changing any parameters until they know for certain that these bills have passed. Then they will proceed with the long line of borrowers. These delays are not long affecting the morale of homeowners, but is equally disappointing to real estate agents, loan officers and of course, the lenders need to make these loans to keep the economy heading upwards. Although there have been mixed feelings on this subject, most St Louis refinance experts would readily agree that Washington needs to get these bills through so that lenders can start processing the large backlog of home loan applicants before the September 30th deadline. It would be a shame for these potential borrowers to lose out on their dream home, the home buyer's tax credit and the low interest rate they may have been locked into or waiting to receive. Thus, let us see how Washington and the current administration addresses this new appropriation of funding for the USDA and hope that all home loan applicants will truly benefit and get their new home. The economy needs this as well. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Visit this website to learn more about a St Louis home mortgage. Stop by Floyd J. Tapia's site where you can find out all about St Louis loans and what they can do for you. We invite you to call us at 877-334-0210 or 314-334-0210. |