Rural Development (USDA) Program – Funding Questionable

Posted in Banking, loans, mortgages, Real Estate by Allison Sousa on March 12, 2010

Towards the end of past funding cycles, USDA has typically issued conditional commitments pending a new cycle of funding. It’s looking like the “new cycle of funding” is more questionable than usual this time around, so no conditional commitments will be forthcoming when current funds are exhausted.

Hopefully, this is just USDA preparing for the worst-case scenario and additional funding will, indeed, come through. But regardless – when coupled with efforts to increase the minimum down payment for FHA purchases to help keep FHA viable – it is definitely not good news for borrowers seeking 100% financing to purchase a home.

Like this:

Be the first to like this post.

Stock Market News

Stocks end mixed near 2008 highs February 24, 2012
U.S. stocks ended mixed Friday, with the Dow and S&P holding near their highest levels since 2008, as investors digested reports on consumer sentiment and home sales.
Gas prices rise 12 cents in past week February 24, 2012
Gas prices have gained 12 cents this week, as tensions over Iran heat up and oil prices keep moving higher.
Sears' survival plan sends stock surging February 23, 2012
Sears posted a massive loss Thursday, but it's betting on a new set of initiatives to help turn things around...and put bankruptcy rumors to rest.
Money market funds dip back into eurozone debt February 23, 2012
After three years of rapidly unwinding holdings in banks that share the euro currency, U.S. money market funds have dipped back in.
Gas price surge: Up 10% this year February 23, 2012
Gas prices are surging, and quickly headed toward $4 a gallon, as growing tensions over Iran sparks a run-up in oil prices.
79% of fund managers didn't beat the S&P February 23, 2012
They may dress better than average, but they usually don't invest that way: Last year 79% of large-cap fund managers trailed the Standard & Poor's 500-stock index, says Morningstar -- the worst showing since 1997.
Fear of Iran is inflating gas prices February 23, 2012
Tensions with Iran are adding at least 30 cents to a gallon of gasoline in the United States, and experts say gas prices have only just begun to rise.
PC slump kills HP and Dell's bottom lines February 22, 2012
Maybe HP wants to rethink that whole "we're not getting rid of the PC" decision?
Greece gets a reprieve, but crisis not over February 21, 2012
Once again, Greece appears to have been snatched back from the brink of default with the promise of more bailout money.
Greek bailout back in private sector hands February 21, 2012
It looks like Greece will avoid an outright default in the short run now that eurozone finance officials have signed off on a second bailout for the debt-stricken nation.

Real Estate News

Why the settlement is a fair deal February 24, 2012
Shaun Donovan is the Secretary of the U.S. Department of Housing and Urban Development.
Why the Federal Reserve can't fix housing February 24, 2012
Housing is still one of the biggest drags on U.S. economic growth, but don't look to the Federal Reserve for help. The central bank may have few tools left to fix it.
New home sales exceed expectations February 24, 2012
New home sales exceeded forecasts in the latest government readings Friday, another sign of a long-awaited recovery in the battered housing market.
The rich walk away February 23, 2012
Five years after the housing bubble burst, America's wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country -- and many of them are doing so voluntarily.
30-year mortgage rate rises above record low February 23, 2012
The 30-year fixed mortgage rate rose for the first time in four weeks, relinquishing its all-time record low amid news that the housing market is showing some signs of improvement.
Home prices at lowest point in 10 years February 22, 2012
Home prices fell to their lowest point in more than a decade in January, but that helped to lift the pace of home sales, according to a report from an industry trade group.
Multi-million dollar foreclosures February 21, 2012
Even these mega-mansions in some of America's wealthiest neighborhoods are not immune to the housing crisis.
Housing: The one bailout America could really use January 18, 2012
Laurie Goodman is an apolitical number cruncher who has spent most of her 28-year career out of the public view, studying the minutiae of mortgage-backed securities (MBS) for big investment banks. She's long been a star among Wall Street insiders, however. She holds the record for the most top rankings for fixed-in-come research from the trade bible Ins […]
Fannie, Freddie legal fees: $110 million and counting February 22, 2012
A watchdog agency said Wednesday that the legal tab for former leaders of mortgage finance giants Fannie Mae and Freddie Mac is at least $110 million.
The other foreclosure settlement February 21, 2012
Millions of borrowers who suffered financial losses because their mortgage lenders played fast and loose while processing their foreclosures now have two ways of getting a payback.

The Wonderful World of Mortgages