Jun
26

Rural Housing Provison in Farm Bill Approved

June 26, 2012

Rural CommunityOn June 20, the Senate passed by voice vote an amendment to the farm bill offered by Sen. Ben Nelson (D-Neb.). This is a vital victory for the National Association of Home Builders (NAHB) as the amendment would “grandfather” all existing communities in the USDA Rural Housing Section 502 program for another 10 years, allowing them to maintain access to USDA’s Rural Housing Service.

In addition, the amendment also increases the legal population threshold for the definition of a “rural” county from 25,000 to 35,000 for those currently residing in these communities.

“NAHB strongly believes that the programs offered by the Rural Housing Service (RHS) Section 502 are instrumental in providing opportunities for homeownership to families living in rural communities,” the letter stated. “The amendment does NOT expand any funding levels for rural housing programs. It simply updates the pool of communities eligible for its services and will not place additional financial burden on American taxpayers.”

So what exactly is the USDA Rural Housing Section 502?

According to the USDA, Section 502 loans are used to help low-income individuals or households purchase homes in rural areas. Applicants for these loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to pay their mortgage. Applicants must show reasonable credit histories as well.

The loans are for 30 years and there is no required down payment. Rural Development officials have the authority to approve the majority of Section 502 loan requests.

Categories: Mortgages, NAHB

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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