Rural Housing Service Announces Program Changes

Filed in Homeownership by on December 17, 2014 0 Comments
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blueskyhouseThe  Rural Housing Service, which promotes housing in rural areas and is run by the U.S. Department of Agriculture, is updating its loan programs by streamlining processes, reducing regulations and strengthening the agency’s ability to manage its programs.

These programs provide critical access to mortgage credit for home owners, builders, small individual property owners and multifamily developers in rural areas.

Of note, the agency has implemented a rule to encourage new construction that combines construction and permanent loans. Traditionally, borrowers interested in building a home had to close two loans to obtain both interim construction and permanent mortgage financing. A single close feature streamlines the closing process and reduces borrower costs by eliminating the need for separate loan closings.  The new rule became effective on Dec. 1.

The Rural Housing Service says its changes include expanded lender eligibility requirements, new loan terms and updated appraisal rules.

View more details here.

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