USDA Loans Possibly Headed for Wave of Defaults
An audit released recently revealed that thousands of these low-cost rural home loans might be headed for default, compromised by poor oversight and the same type of lending practices that triggered the subprime mortgage meltdown.
The Audit
The audit revealed that more than 10 percent of loans might have have been provided to borrowers who failed to meet minimum financial providers.
The agency specializes in providing loan guarantees to low- to middle-income borrowers in rural areas. The value of USDA-backed loans has soared in recent years, from $3.7 billion in 2007 to about $16.8 billion last year.
My Foreclosure Listing in Bradfield Farms
I have an active foreclosure listing on 7329 Reedy Creek Rd, in Bradfield Farms listed over 40K below tax value. I’m working with an incredible mortgage broker who specializes in 100% USDA financing. It’s a great program and like many loan programs has it’s pros and cons.
Qualify Yourself Outside of the Lender’s Qualification
Many borrowers should just be aware of the consequences of over inflating their present income and not purchasing a home that they will not be able to maintain for long period of time.
The agency specializes in providing loan guarantees to low- to middle-income borrowers in rural areas. The value of USDA-backed loans has soared in recent years, from $3.7 billion in 2007 to about $16.8 billion last year.
