Posted on: 02nd Apr, 2009 02:21 pm
my husband and i are considering financing for a home through the usda 's guaranteed rural housing program. we are waiting to find out if we qualify right now. i have concerns about whether we would be able to refinance the loan once we have enough equity a few years down the road outside of the program or if we are stuck for the 30 year term of the loan. a colleague who works for a company that does refinance mortgages has told me she has not been able to get any client she has encountered out of usda loans. and the lender she works with won't touch them. i don't want to be trapped into a 30 year mortgage especially if our only option to refinance 5 years down the road is another 30 year mortgage.
Currently, USDA GRH only provides for refinancing of existing Rural Housing Loans. Considering that funding for this program is not fully utilized nationally at $825 million still unused for Fiscal Year 2007 which ends in just a matter of days, I would like to suggest the following knowing that there will be a surplus of these funds carrying over into Fiscal Year 2008 and most likely that USDA's new funding allocation for FY2008, most likely, will not be fully used.