Posted on 07/21/2010 9:00:24 PM PDT by Big Bureaucracy
Shirley Sherrod, the former Agriculture Department’s director of rural development in Georgia, gives some great tips in her 40 minute speech at NAACP. First time home buyers probably would not think to look for a loan at the Department of Agriculture. Apparently there are some great deals there. So here is more professional advice from Shirley Sherrod and the US government:
We have more money for single family housing – the red loans – and that’s loans from the agency - that we’ve ever had in the history of the program. But we are having problems having this money out the door and guess what? Credit issues.They had to send me extra help from Washington to try to help because of the Stimulus money, because we have more money, direct loans, for low income and moderate income families and guess what – those loans are 100% loans – you can buy the lend – and build a house - 100% loans – no private mortgage insurance – those loans are directly from USDA.
We got to be more careful about our credit… in addition to the direct loans from the agency – we have guaranteed loans that are for people with slightly higher income. That program has been so successful that we are about to run out of money. And I am talking all around the country I am talking about billions. In Georgia in 2008 they made like 1265 guaranteed loans, last year we did almost 4500 and this year if the money doesn’t run out… we might do as many as 12 000.
If it was ever a time for people to become homeowners – now is the time.
(Excerpt) Read more at bigbureaucracy.com ...
Isn’t that special..../s
That which is not earned, is usually not respected.
In the video she also tells the story about how she tells a lady at a hospital not to let the hospital withdraw money from her pay-check because it will ruin her credit score. Instead she gives the advice: give them $25 a month - the hospital will take that.
This USDA loan program needs a thorough looking into (quite apart from the Sherrod fiasco).
They are still giving sub-prime loans to people to buy existing or NEW houses in ‘rural’ areas. This are not farms and you don’t have to be engaged in agriculture of any kind to get a home loan. The homes can be in new suburbs next to rural areas ... another gift to NAHB and NAR and banks.
These are the same risky deals that got us in trouble before ... and they’re still doing it.
Exactly! This was Sherrod’s job! Obama signed a financial reform bill, that does not include Fannie, Freddie and the Department of Agriculture is giving sub-prime mortgages more than ever ?!?!
The lady knows good tips.
Georgia gets another $30M for home loans
http://www.effinghamherald.net/news/article/11046/
USDA Rural Development’s direct loan program has many positive features including 100 percent financing and low-interest rates. House payments are based on household income. The program also has built in provisions, for example, so that down the line, if someone loses their job, mortgage payments can be deferred and rolled into the end of the loan. This provision is only available to Rural Development borrowers after the loan has closed and isn’t available to families that have homes from other lenders.
“The data show that, in 2004 and 2005, more than half of subprime loans were originated by independent mortgage companies subject to consumer-protection enforcement by the Federal Trade Commission and various state agencies,” Greenspan.
So Obama passed a financial reform that creates a consumer-protection bureau inside the Federal Reserve. Do you think that will help?
Dave Ramsey has always contributed this advice as well in more recent years. Was Dave's tip as well, and from a hospital administrator I have known for years that deals with insurance, payments to..etc.
I am a fan of Ramsey - he gives a good common sense advice.
http://www.dailyfinance.com/story/taxes/financial-regulation-reform-bill-details/19530870/
video.....
take a better person than me to answer your question..
The Obammunist's nationalized mortgage industry does 97% of all home loans.
Obammunism guarantees mortgage payments to itself.
And it has quit foreclosing.
yitbos
There is nothing wrong with that advice. Since it is true!! And applies equally to all creditors.
What the frak does the Department of Agriculture have to do with providing low income housing? AM I missing something here or is this government simply FUBAR’d?
“They are still giving sub-prime loans to people to buy existing or NEW houses in ‘rural’ areas. This are not farms and you don’t have to be engaged in agriculture of any kind to get a home loan. The homes can be in new suburbs next to rural areas “
Not only that, but they’re destroying the farms while they’re at it. You have a bunch of idiots moving into suburbs next to farms, and the next thing you know, they’re clamoring for services. Up go property taxes... Soon you have home prices increasing, land prices going up. Try buying a big farm when you have the morons in the suburbs inundating you...
And then you drive up the price of the established family farms to the point the death tax applies...
Just a sad state of affairs.
This is an interesting side-effect - I didn’t think of that! Very interesting!
Absolutely.
This program is contributing to LOSING farmland through suburban sprawl ... something libs usually complain about.
The fact that it is USDA doing this is a cruel irony.
The program is a gift to NAHB, NAR and cities who want to increase their tax base.
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