Tuesday, March 16, 2010

More Bad News Via One of Austin's Pros

Here KLBJ real estate radio host John McClellan informs about another ominous sign for real estate sellers in 2010. (Great for buyers though!)

- Mr. Bubble

USDA in Jeopardy!

by John McClellan on March 16, 2010
It has recently been announced that the USDA loan program will be out of money by the end of April 2010. In any typical year the USDA loan program has plenty of funds to make loans through the end of the year. Over the last few years as other “0″ down loan programs have disappeared, USDA has stepped up to fill the void and provide affordable “0″ down loans for first time homebuyers across the nation. This increased demand for USDA loans has led to a shortfall the last two years in funds needed to keep this program solvent. Last year the stimulus money was used to bridge the funding gap and business went along as usual. This year however there is no stimulus money left to bridge the funding gap and it looks like that sometime in April we will be out of funds and USDA will stop issuing commitments until their normal refunding takes place (sometime in the late fall).

More here...

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