I received this message this morning from one of the Wichita mortgage lenders that I deal with on a regular basis. Rural Development loans are 100% loans for low-income families. These loans have income, purchase price and area limitations. These are the areas in and around Sedgwick County that usually qualify for a USDA Rural Development loan: Valley Center, Goddard, some areas of Park City, Maize, Colwich, Andale, Bentley, Peck, Clearwater, Mulvane, Belle Plaine, Wellington, Sedgwick, Andover, Augusta and Rose Hill. We can help you verify if a home is in the qualifying area or you can refer to this map.
US Dept of Agriculture just announced that they will be exhausting funding for the Guaranteed Rural Development loans. This is on a national level. I spoke to a Dept of Ag representative on the phone today, and he explained to me that this will be occuring sometime late April. There is a small chance for some subsidiary loans that the Dept of Ag is trying to get, but they are unsure if this will occur.
Unlike past years, the program is running out of funds a full 6 months early and will not continue business as usual. Because of this originations for this program will soon halt. I understand that this a tremendous blow to many of your customers and communities, but this situation effects all lenders not just Wells Fargo.
Lenders still may take applications for these loans however, the funding would still need to be backed by USDA. This means buyers need to apply as soon as possible.
Michael T Hayden
Home Mortgage Consultant
Stagecoach Priority Certified
Wells Fargo Home Mortgage
