“The Number of USDA Mortgages Continue to Fall”

“The Number of USDA Mortgages Continue to Fall”

I continue to read that USDA loans continue to fall and that has also been the case in my practice but, is there any wonder? There are a number of reasons such as, there are less allowable towns, there was recently an increase in the fee (it was 2% and now 2.75%) and the guidelines continue to be more restrictive. The truth is this is all by design.

 

This type of loan has had the lowest default rate in spite of requiring NO money down. Same is the case for VA loans, again no money down, again the same minimal default rate. The majority of these borrowers pay their bills especially their mortgage.

 

This is just another way to reduce home ownership. How does this make any sense and yet we keep hearing that our leaders are focused on creating more home ownership. Do you thing they are making this stuff up?

 

Hopefully, once there is a new President in office we get back to removing many of the restrictions that are hampering home ownership. Do you see that happening?

 

Image courteesy of renjithkrishnan/freedigitalphotos.net

Subscribe to my blog via Email:

 

Enter your email address:

Delivered by FeedBurner

 

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 16 commentsJoe Petrowsky • September 28 2015 05:53AM

Comments

Joe - I certainly hope so.  I certainly see that small businesses hampered by more and more restrictions.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) about 3 years ago

Hi Joe.  It is very apparent that Obama wants the government out of the mortgage business.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 3 years ago

There aren't many areas around me that are "USDA" approved, so it's no wonder we don't see too many of these.

Having the lowest default rates says something good about those loans!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) about 3 years ago

Joe, was unaware of further restrictions. Most of my buyers are all cash and the price points are high! We need relief in the affordable range. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 3 years ago

Good morning Joe.  I won't go off on the political issues as I would be banned from this site.  Otherwise I understand fully what you are saying

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) about 3 years ago

Good Morning Joe: I don't know where the governance will take our economy. It is in an ignominious state.

Is there hope? I do hope so.

Posted by Maria Gilda Racelis, Home Ownership is w/in Reach. We Make it Happen! (Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington) about 3 years ago

Guidelines being more restrictive must be the major reason for this Joe...

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) about 3 years ago

Joe, it continues to baffle me. It is one big oxymoron... 

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) about 3 years ago

Joe, being in a large metropolitan city, I have never had a buyer use one of these loans.  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 3 years ago

Joe Petrowsky Yes. I have been hammering away at this for some time. I think it is a government conspiracy to help the BIG MONEY guys who have moved into residential income properties from commercial. More renters = more money for them.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) about 3 years ago

I definitely used to see more USDA loans than I have this year. I wondered why I had seen a drop off. Now I know why. 

Posted by Nicole Doty - Gilbert Real Estate Expert, Broker/Owner of Zion Realty ZionRealtyAZ.com (Zion Realty) about 3 years ago

You are so right Joe!  It has become expensive to get a USDA loan and I have not done one in years here...it is a shame.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) about 3 years ago

Joe the other obstical with USDA Loans is USDA tends to run out of money towards the end of their fiscal year.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 3 years ago

Joe

Over the last several years homeownership has been surpassed and has become more costly to get a mortgage.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 3 years ago

I agree with George but a new fiscal year is here so hopefully we can turn some of these loans.   I find the USDA loans helpful in my community outside the cities

Posted by DEANNA EARLY - - ( NMLS # 268590 ), Virginia Mortgage Loan Originator (American National Bank and Trust) about 3 years ago

This is a good topic for discussion with those who are running for congress.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) about 3 years ago

Participate