However, with the stringent St Louis home mortgage lending requirements facing would be homeowners today, tens-of-thousands of potential buyers have been ushered into this program with promises of a better life, a better home loan in a financial fairytale land not so far away.
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.
St Louis mortgage experts have known that the qualifications for the USDA loan is much more stringent than the FHA required loans. But the biggest difference with the USDA home loans was there were lower default rates.
But with every good aspect there are negative ones as well. For one thing, the USDA never expected to handle huge amounts of St Louis loans and have thus run low on funding.
In order to salvage this successful program, Congress recently passed a billed by Congressman Paul Kanjorski which allows the additional appropriation of funds to help keep this loan program viable.
Another bill was also passed by the Senate Appropriations Committee sponsored by Senator Michael Bennet.
But the frustrating thing seems to be that while all this is optimistic news, at present, one still cannot get a St Louis home loan from the USDA.
So, homeowners who have picked their new home and filled out all needed St Louis finance paperwork by said deadlines are anxiously awaiting news from Capitol Hill as to when more funding will be available. Now they have until September 30th to close on their home loan.
The additional monies would definitely be a welcome catalyst for this sinking economy. These bills should pass but the question still remains when these funds will be available.
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.
But the one thing St Louis refinance analysts strongly agree on is that by the time Congress passes this new funding, there will be a massive backlog of borrowers who may still not get their home mortgage by the September 30th closing.
This presents an unprecedented loss to these home buyers who will not just lose their new home of choice, but will also miss this tax credit all together not to mention losing these historically low interest rates that may not reappear for a very long time.
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.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/328235
Article Added on Monday, October 10, 2011
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