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USDA funding may not run out after all – HR 5017 passed today

HR 5017 passed

1c37c8af858369289a1a789b44b3190aToday, the Kanjorski bill (HR 5017) passed unanimously in the House Financial Services Committee, a bill aimed at supporting the rural housing market that has struggled to get passed. HR 5017 also known as the Rural Housing Preservation and Stabilization Act of 2010 will end the current method of using federal funding to backstop the guarantee, but instead will fund the program through mandatory fees.

HR 5017 ensures rural homebuyers access to affordable loans through USDA, but because these loans have tripled since 2006, federal funding will be running out literally in the next few days, making passage critical.

Pennsylvania Congressman Kanjorski said, “At no cost to taxpayers, [the Kanjorski] bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.”

In order to pay for the program, lenders will pay up to a 4% fee on new home mortgages. Next, the bill moves to a House vote.

In a House press release, homeowner Virgie Spruiell from Pennsylvania said, “As a result of this program, I was able to purchase my first home which I have wanted all my life. I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski’s efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did.”

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CC Licensed image courtesy of theqspeaks via Flickr.com.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

9 Comments

9 Comments

  1. Jonathan Benya

    April 26, 2010 at 6:23 pm

    Don’t count your chickens before they hatch, there’s still a long way to go until this gets finalized. I’ve got clients worried about this right now!

  2. Subrina Bauer

    May 18, 2010 at 9:22 pm

    I was told today that funds have ran out. Please contact your state representatives and ask that they get these bills passed as soon as possible. I am trying to purchase my first home and have now had my heart broken! I have called and emailed my represntatives and ask that everyone else does the same. This program is a great program making it possible for people to purchase a house that with love they turn into a home. I pray that I have that opprotunity still!

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