Arizona Daily Star (03/25/08); Smythe, Christie
Mortgage lenders in Tucson and other parts of Arizona are turning to the U.S. Department of Agriculture's Rural Development guaranty program to help finance homes on the outskirts of the state's metropolitan areas, as a result of the credit crunch. So far this year, 170 loans totaling $27.6 million have been written in the state through the guaranty program--an increase of roughly 700 percent from a year ago, according to Ernie Wetherbee, housing program director for USDA Rural Development Arizona. Buyers in qualified areas who earn up to 115 percent of the median income can obtain 100 percent financing, face no loan limit and can make certain deductions to satisfy the income guidelines; and lower-income borrowers can use a direct loan program for homes valued up to $207,100 in Pima County and the interest on their loans can be subsidized. The USDA Rural Development guaranty program is not as well known as the loan-guaranty programs of the Federal Housing Administration and Veterans Administration.
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