News Center - Springhill Group Home Loan | Impact of Budget Cuts on Rural Housing and A... - 0 views
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hannah brooklyn on 22 Mar 12Source : http://newscenter.springhillgrouphome.com/ http://springhillgrouphome.multiply.com/journal/item/58/Springhill_Group_Home_Impact_of_Budget_Cuts_on_Rural_Housing_and_Availability_of_Mortgage Springhill Group Home: Impact of Budget Cuts on Rural Housing and Availability of Mortgage http://newscenter.springhillgrouphome.com/2012/03/springhill-group-home-impact-of-budget-cuts-on-Rural-housing-and-availability-of-mortgage/ The budget cuts on Rural housing finance are raising many significant questions. In the present economic situation, where federal funding for the Rural housing projects is much needed, the budget cut is really distressing. According to the Rural market experts, Section 538 Rural Rental Loan Guarantee Program has offered the most effective service in this regard. However, the recent budget cut is much likely to affect the proceeding of this program and home loan rate for buying a Rural property. Rural economics - Demand vs. supply Only about 19% Americans live in Rural areas. The average yearly income of a Rural household is lower than an urban one. The poverty rate in the Rural America is about 15%, whereas the rate is almost 13% in urban America. Section 538 by United States Department of Agriculture (USDA) is the largest mortgage lender in Rural America. Till the end of 2011, the program funded about 700 Rural housing projects. Unfortunately, this program has become the primary victim of budget cut. It received 130 million USD in FY 2010; while in FY 2011, the Congress appropriated only 30 million USD. The appropriation for FY 2012 is zero. If Section 538 does not get any funding in this year, the prospect of the program is going to be doomed. Difficulties faced by Rural housing development Considering budget deficit, one can say that it is difficult to construct affordable housing units in Rural areas and thereby the obvious option of rental housing comes into play. Interested banks to offer mortgage loans in less developed Rural ar