The last standing 100% financing option has run out of money for this year. The USDA Rural Housing Fund finances properties in rural areas, and is targeted for lower income buyers. But, with a giant increase in participation in the program, they will stop new mortgages in April. Most mortgage banks and brokers have already notified Realtors and clients that it will no longer be available. This is a really tough thing to have happen when the market for lower income buyers in rural areas was improving. With so many foreclosures and short sales out there, and the first time home buyer tax credit available, many people who never thought they would be able to own a home were shopping for houses. The rest of the month and April will see a major decline for the rural market, which is most areas outside of larger towns, so most of Oregon, Washington, the rest of the West will see a decline in purchases.
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