Great News For Starter Home Buyers and Sellers
RURAL HOUSING FUNDING RESTORED: NAR reports the long anticipated restoration of the Section 502 single-family rural housing program is headed to President Obama's desk for signature into law. NAR has been working on restoring funding since March. Although the legislation increases the guarantee fee for borrowers, the fee can still be financed. This change will make the program completely self-sufficient. The legislation also increases the Rural Housing Service (RHS) commitment authority allowing guaranteed loans. Previously RHS had been providing conditional commitments. RHS will announce new guidelines shortly after the President signs the bill. (Note: the legislation allows the agency to go to a guarantee fee of 3.5 percent and an annual fee of 0.5 percent.)
