Many of my clients (Buyers) have taken advantage of the Rural Home Loan Guarantee Program (also known as USDA loans) in the past. The announcement below should come as welcomed news to those home buyers considering a home purchase in an area outside the Reno-Sparks metro area.
From the Mortgage News Daily newswire…
The continued availability of government guaranteed mortgages for rural homebuyers was virtually assured yesterday when the House Financial Services Committee voted to approve H.R. 5017. The unanimous vote will send the Rural Housing Preservation and Stabilization Act of 2010 to the full House of Representatives where sources said it was fast tracked for a vote as early as next week. [This program] assists homebuyers living in rural areas to obtain affordable mortgages guaranteed by the Department of Agriculture (USDA). These loan guarantees have become enormously popular during the financial crisis and consumer demand has tripled the annual number of loans that are typically issued each year. [See the full post here]
I work with many lenders who offer the Rural Home Loan Guarantee Program. Give me a call if you’d like me to put you in touch with one.
Patsy Livingston
I’m looking at having a Casita type structure built on an acre in the Galena Forest. I’m currently living in the same house as my daughter and her family, but need separate quarters. What is available in a “construction loan” for a log casita?
billddrummer
Cash of your own.
No, just kidding.
I’m not aware of any lenders who are financing construction loans with less than a 40-50% equity position. Most of the people I’m familiar with aren’t comfortable with values as they are, and expect lots like yours to continue to diminish in value for the next year or so.
So if the lot is your equity, expect the lender to discount its value significantly before making you the construction loan.
If there’s a lot loan on the parcel, that complicates matters even more.
In the past, many banks would make those types of loans.
Now, Not So Much.