Another Hurdle For Home Buyers
Just when it looked like a good spring coming yet another hurdle was thrown out there for homebuyers. I have received several emails in the last couple days warning that RD will be running out of money in mid to late April. Most of my first time home buyers were planning on using RD being the last of the low down payment programs. Here is what one lenders explanation why we should be concerned.
WHY IS THIS DIFFERENT THAN OTHER TIMES? Because the fiscal year for RD runs 10/1 to 9/30. And before, there were always emergency funds forthcoming. This time there are no emergency funds available. Why, you ask? Because under the presidents new proposed budget, they are proposing that RD become a Direct Endorsed product (just like FHA). That means underwriters will have to get RD/DE certification, and underwrite the deals to the published guides, but would NOT send the deals to an RD office for their Conditional Commitment. The rub for all of us right now is that RD runs out of funds in late April. And since there is this budget proposal out there, no one has asked for additional funds (which takes an act of congress). In the long run, this is a good thing. You wont have to wait for 1-3 weeks for an RD approval on top of our underwrite.
If you are thinking on using RD time is of the essence. It is a first come first serve and when the funds run out the deals will not get RD approval. FHA is still a great product but still require a 3% down payment so the clock is ticking and like I have said over and over...NOW IS THE TIME TO BUY!
As always if you think the Big Rapids area is a place you would like to live give us a call (231) 796-5253 or check out either link below and we will help you find a house so the Big Rapids area can be your home too. Thanks for reading.
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Randy Ostrander |
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