Every few years, the United States Department of Agriculture (USDA), reviews Missouri cities and towns, to determine the availability of rural lending in these areas.
In 2012, the USDA provided lenders, realtors and potential home buyers, quite a scare when they announced that Ozark, Bolivar and Republic, could potentially lose USDA financing, forever. This scare came directly on the heels of the mortgage crisis of 2007-2008 and the common thought of that time was that losing USDA financing would further erode an already damaged mortgage industry and make purchasing a home for Missourians, even more difficult. Luckily, a much wiser decision was made and not only did Ozark, Bolivar and Republic remain on the eligible financing list, Nixa was added!
The USDA is again reviewing Missouri cities/towns for continued lending eligibility. There are 16 cities and towns on the potential chopping block, and again, Ozark, Nixa, Republic and Bolivar are among them. (You can find the full list of potentially impacted areas here.) If these towns lose this loan product, business will continue and the good folks of Southwest Missouri will continue to purchase homes, but there will be one less, very affordable option available to them. In the words of the Department of Agriculture, the USDA Single Family Housing Guaranteed Loan Program “provides low and moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence.” In other words, 100% financing, with a great interest rate, easier credit restrictions and very low Mortgage Insurance!
In my humble opinion, USDA financing is a great loan option for many homebuyers and would be missed tremendously, if pulled from these cities. The program is the best option for non-Veteran, new home buyers, with limited or no assets for down payment, that make less than $78,000 per year and are purchasing a home in an eligible area. If you would like to voice your concern about the potential towns losing this product, send comments to Pamela.Anglin@mo.usda.gov or call Missouri Rural Development Housing Program staff at (573) 876-0990.
With over 400 home loan products, no matter what decision the USDA makes, PrimeLending will still have numerous programs available to homebuyers that need low down payment, affordable options. The business of lending is continuously evolving and the only thing constant in our industry, is change!
If you are a homebuyer looking to purchase a home in Ozark, Nixa, Republic or Bolivar, I urge you to get pre-qualified now, by contacting me at 417-616-0782 or by visiting my website at www.springfieldmortgageonline.com. If you are a realtor, I urge you to help your buyers in these areas find homes rapidly, before this financing option is potentially eliminated!
Check out our 2018 Product Spotlight on our Loan Options page for a complete breakdown on available Mortgages and down payment options.