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Posts Tagged ‘rural housing service’

Bill to Use Section 8 Vouchers to Buy Manufactured Home Signed by President Obama

August 5th, 2016 Comments off

mfg home credit mhpronews postedDailyBusinessNewsMHProNewsFollowing up on the recent Senate passage of a bill that passed in the House in February – The Housing Opportunity through Modernization Act (HOTMA), posted on MHLivingNews and picked up hundreds of mainstream media outlets and advocacy sites – President Obama signed that bill it into law, as expected.  The bill willl allow Section 8 vouchers to be used for the purchase of a manufactured home (MH),

Currently, the vouchers can be used only for renting an MH, but the new law will allow those who qualify for Section 8 housing to use the vouchers for mortgage payments, property taxes and insurance for the entire year. The goal is to enable those of limited means to become homeowners, according to nationalmortgagenews.

A coalition of advoacy groups, including manufactured housing, were instrumental in the passage of the act. Lesli Gooch, from the Manufactured Housing Institute (MHI), said public housing agencies and HUD need to reach out to families to make them aware of this program; and work with lenders, including state housing finance agencies and the Rural Housing Service (RHS) to make sure lenders will honor the vouchers.

RHS currently finances MH only if the home is secured by land, or they will lend if the home is on a 99-year lease. “However, USDA (United States Department of Agriculture) is conducting a pilot in Vermont, New Hampshire and Oregon that allows borrowers to lease land for two years longer than the mortgage term,” according to an RHS spokesman.

Sponsored by Reps. Blaine Luetkemeyer, R-Mo., and Emanuel Cleaver, D-MO., the bill also authorizes the USDA to develop a direct endorsement program for the RHS whereby private lenders can approve loans. This will expedite the loans since the staffing at RHS has been diminished, and each loan must be approved by the agency.

The law further includes reforms to the Federal Housing Administration (FHA) condominium program.  Learn more at the link here##

(Photo credit: MHProNews-manufactured homes)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Rural Housing Service Automating Loans

April 9th, 2014 Comments off

In an attempt to streamline services of the U. S. Rural Housing Service (RHS), administrator Tony Hernandez says the agency is automating the loan approval process and lenders are willing to pay $50 for each loan to cover the cost, reducing the RHS need to seek financial support from Congress. “They will pay a fee so it is easier for them to close more loans, and get more people into homeownership,” Hernandez told a House appropriations subcommittee April 4, according to nationalmortgagenews.com. The approval is done manually, often using back and forth faxing, since the government shutdown disabled the automated system, resulting in many lenders and real estate agents shunning the United States Department of Agriculture program because of the long turnaround time, opting for FHA instead.

MHProNews.com has learned the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) support the modernization effort. Last year RHS lenders originated 163,000 federally guaranteed mortgages valued at $22.4 billion, up from $19.2 billion in 2012. ##

(Image credit: texaslendingtoday.com)

Government Shutdown Shuts Down Rural Home Loans

October 11th, 2013 Comments off

While a number of government loan programs have been slowed by the shutdown in Washington, the entire staff of the U. S. Department of Agriculture Rural Housing Service has been furloughed, paralyzing the processing of loans for rural Americans. As nationalmortgagenews reports, Don Frommeyer, president of the National Association of Mortgage Brokers, says, “People in rural areas who have applied for a USDA loan will not be able to see it through until after the shutdown.” MHProNews understands these are loans guaranteed by the USDA.

(Image credit: housingwire/shutterstock–“Deflated”)

Cuts could Cut those Wounded even More

March 4th, 2013 Comments off

HousingWire tells MHProNews the $85 billion sequestration cuts may affect several housing initiatives, including ones aimed at low-income households and individuals. The National Association of Realtors (NAR) says the Federal Housing Administration (FHA) admitted the time frames for FHA loans may be impacted; furloughs at the Dept. of Agriculture may delay rural housing service loans. In addition, the cuts may result in 75,000 fewer households receiving foreclosure counseling. Another 125,000 may lose Housing Choice Voucher (HCV) assistance which pays for their apartment, potentially making them homeless. Further, 100,000 others residing in emergency housing programs, formerly homeless people, including veterans, could be returned to the street. The Veteran’s Administration (VA) will not be affected.

(image credit: Forbes)