“I’m pretty sure that the individual banks who deal with USDA rural housing loans can still place their own guidelines on. “
Why would they need to? The loan is backed by the gov’t.
Plus if a bank agrees to take a USDA loan they have to agree to the USDA terms
nice uh> No or bad credit score? No problem
I’m not an expert on this, but I think even though the loan is backed by the Government, there are buy back provisions to the banks who originated the loans. Creating additional guidelines and requirements may be their way of keeping buy backs to a minimum.
I get what you’re angry at though.
The problem with mortgage loans was really not the fact that subprime loans were available to borrowers. Rather, these loans were packaged and sold on the secondary market as prime products (which included Fannie Mae and Freddie Mac).
Because of Government intervention, subprime loans no longer exist. Instead, all borrowers must go through a nightmare of guidelines and procedures in order to get their loans. Consequentially, most borrowers cannot get mortgages today, which means the housing market will continue to sink.