USDA and Flood Insurance, Problems for GA Homeowners

springThe two most important issues facing Georgia home loans right now are USDA rural development and flood insurance.  USDA loans have become wildly popular in the last two years due to the fact it is one of the only 100% loan programs left.  In the middle of March USDA announced that they anticipate running out of funds by the end of April.  This has happened in the past and funds were allocated quickly, but this time may be different.  It does not appear that congress is going to reallocate funds this time.  They will let funding run out and buyers that would like to get a USDA rural housing loan, may have to wait until October or November.  This would be devastating to the rural housing market in Georgia.

Flood insurance is also a big issue right now.  On March 28, 2010, congress let the National Flood Insurance Programs authority expire.  This has not happened since 2002 and some speculate that the lapse was because Congress was focusing on getting the health care bill passed.  When the NFIP’s authority expired, they now do not have the authority to issue new flood insurance policies or renew old ones.  If this is not corrected soon, it could cause problems when trying to obtain a Georgia home loan.  If the property you are trying to buy needs flood insurance and you cannot obtain it, you may not be able to close on your GA home loan.

What can we do?  If you are a Realtor®, NAR has set up a call to action form that you can send to your congressmen.  Follow this link to the form –  NAR Call to Action

If you are concerned potential home buyer, write or call your congressmen.  Let them know these issues are important to you.

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