St Louis Home Mortgage Reports No USDA Loans For Home Buyers

One of the better programs that has been available to those wanting to buy a home with guaranteed lower interest rates and low to no down payments has been the United States Department of Agriculture.

To counteract the tougher lending guidelines that have followed this mortgage crisis, many potential home purchasers have been counting on the USDA St Louis home mortgage program to help put them into a new home with better rates which in turn would give them a better life.

And according to federal banking statistics, in 2006, the USDA program backed about 31,000 loans or $3 billion worth. And then in 2009, that number had grown to 133,000 loans worth approximately $16.2 billion.

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.

Now for the bad news: This program was never meant to handle that many St Louis loans and due to this run on this stimulus package, they ran out of money.

To rectify this unfortunate situation, members of Congress are in the process of appropriating more funding for this successful program. In fact, the House passed a bill sponsored by Congressman Paul Kanjorski of Pennsylvania.

The Senate also passed a bill out of the Appropriations Committee which was sponsored by Senator Michael Bennet of Colorado.

But even though bills have been passed to keep this program funding new mortgages, there are many who still cannot get a St Louis home loan from the USDA.

So, with all St Louis finance paperwork completed, potential borrowers nationwide are awaiting any news from Washington in regards to when they will be more funding available. The good news is that it was announced that the tax credit has been extended till September 30th which may give these consumers the needed time to close.

To help spur the economy, politicians are expecting these new bills to pass but are not giving any potential dates when these new funds will be ready.

Keep in mind, buyers have to close by September 30th. And many of these home loan applicants are depending on these USDA loans. They signed binding contracts by the end of April 30th, and now they are pretty much in limbo.

Realistically, there is sufficient time for the funding to be approved before the new September deadline. But the question remains if there is enough time to close on most if not all of these home loans whose applicants met the June 30th contractual deadline.

Industry professionals are still trying to keep an optimistic attitude that these loans will be made and the closings will take place by September 30th so that the consumer and all professionals involved will be happy.

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.

It would be a shame for these potential borrowers to lose out on their dream home, the home buyer's tax credit and the low interest rate they may have been locked into or waiting to receive.

The borrower has done all that has been asked of them as far as getting their loan application in by the original June 30th deadline. It would be a shame for them to miss out of these benefits due to lack of funding. Let's hope for the best.

Want to find out more about a St Louis home mortgage, then visit Floyd J. Tapia's site on how to choose the best St Louis refinance expert for all of your St Louis lending needs. Or give us a call at 877-334-0210 or 314-334-0210.