Rural development programs help Americans own a home
Posted on Thursday, July 12, 2012 at 4:02:22 PM
A growing number of Americans in rural communities are turning toward federally-backed financing to afford housing. The U.S. Department of Agriculture (USDA) and the Federal Housing Administration (FHA) are increasingly supporting potential homeowners unable to meet strict lending requirements set by banks.
The former has had millions pumped into loan programs. There are currently about 24,000 active USDA mortgages in Minnesota - up 52 percent since 2009, Minnesota Public Radio reports. The residential financing option is allowing Americans put in difficult financial situations to purchase a property.
"These loans have to be underwritten well and we need to make good decisions about who can afford a home. There are folks out here still looking for opportunities. And that's what's going to drive the recovery in these next couple years," Stephanie Vergin, housing program director for the U.S. Agriculture Department in Minnesota, told the news source.
According to the USDA Rural Development website, these financial programs are essential to promote economic strides toward a better future. Residential financing options such as federally-backed mortgages can improve the quality of life of many Americans.