The National Association of Realtors (NAR) announced Wednesday that legislation for the Section 502 single-family rural housing program under the Department of Agriculture is headed to President Obama’s desk to be signed back into law. The program allows 30-year originations primarily for low-income families to purchase households or renovate the ones they already own with no down payment at the time of application. Loans are guaranteed by the federal government. The legislation for Section 502 will have a few changes, NAR reported. It increases the guarantee fee for borrowers to 3.5%, however the fee can also be financed. Section 502 Rural Housing Services Single Family housing Guaranteed Loan Program, as it’s formally called, was originally discontinued because in May because it had exhausted its existing funds of $13.1bn. Zero downpayment policies are becoming more common. West Virginia just started a statewide program that allows residents to take out home purchasing originations for no money down at a 3.5% mortgage rate. Write to Christine Ricciardi.
Most Popular Articles
Some housing pundits report the demand for housing is strong, while these same pundits, on another day say that we are in a housing affordability crisis. Can the two narratives be accurate at the same time? If not, which is one is true? HousingWire Columnist Logan Mohtashami takes a deeper dive.
While rent prices are going up, the latest 3% year-over-year increase marks the slowest pace in 18 months, according to a new report from RentCafe.