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Krista Abshure's Blog

By Krista Abshure | Broker in 27540

Possible Issues with USDA loans?

I was speaking with the lender in our office the other day and he shared with me some important information regarding USDA loans that I thought it was pertinent to share with you. I would love to hear your feedback about this and recommendations should this arise. 

"We are starting to hear some news about the possibility of USDA running out of funds.  While this happens every year it looks a little more grim than normal. USDA has stated that unlike in years past there will be no conditional commitment issued; as they have in previous years."

Although it is good for us to be aware of this possibility and it allows us so to give our USDA approved clients one additional reason why now is the time to buy.  My feelings on this is that since the government has been placing incentives such as the $8000 Tax Credit for First Time buyers, the $6500 Tax Credit for existing home owners, the government purchasing mortgage backed securities to keep the interest rates lower ...  why on earth with the government let the USDA program run out of funds? This is a very important program that enables home buyers to purchase a home in some of the more rural communities. I am going to contact my congressional representatives and let them know how I feel about this and recommend you do the same!  Maybe for once they could be pro-active instead of re-active!

Congress:  https://writerep.house.gov/writerep/welcome.shtml 

Senate: http://www.senate.gov/reference/common/faq/How_to_contact_senators.htm

You may also contact me directly for additional information!

Krista Abshure

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