A government program that is intended to help residents of rural areas get low-rate home loans is running out of financing, which could cause the real estate market in these areas to spiral. Despite a recent increase in funding, the United States Department of Agriculture’s (USDA) Rural Development program is about to run out of money, which could bring real estate recovery in many small communities to a screeching halt. A great deal of smaller markets have benefitted from this program, as it does not require homebuyers to put any money down or pay monthly mortgage insurance premiums. Furthermore, these purchasers need not be first-time homebuyers to qualify, according to the program’s website. Qualifying candidates enter 30-year fixed-rate mortgage agreements at current market rates.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
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The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
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Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio