A major player in helping homeowners get into a home much faster has the the United States Department of Agriculture. They would guarantee lower interest rates and no or low down payments for rural home buyers.

To counteract the tougher lending guidelines that have followed this mortgage crisis, many potential home purchasers have been counting on the USDA St Louis home mortgage program to help put them into a new home with better rates which in turn would give them a better life.

Looking at the sharp contrast in loans done by the USDA, we notice 31,000 loans worth $3 billion in 2006 compared with the phenomenal numbers of 133,000 loans worth about $16.2 billion done in 2009.

What about qualifications for this program? The standards for qualifying for these home loans were rather tight and the default rates were far better than the FHA which was good news according to St Louis mortgage experts.

Due to the spike in St Louis loans being run through the USDA, they have been pushed to the limit and are drained as far as funding is concerned. This is the negative side of a good thing.

To rectify this unfortunate situation, members of Congress are in the process of appropriating more funding for this successful program. In fact, the House passed a bill sponsored by Congressman Paul Kanjorski of Pennsylvania.

Another bill was also passed by the Senate Appropriations Committee sponsored by Senator Michael Bennet.

But the frustrating thing seems to be that while all this is optimistic news, at present, one still cannot get a St Louis home loan from the USDA.

So, with all St Louis finance paperwork completed, potential borrowers nationwide are awaiting any news from Washington in regards to when they will be more funding available. The good news is that it was announced that the tax credit has been extended till September 30th which may give these consumers the needed time to close.

The additional monies would definitely be a welcome catalyst for this sinking economy. These bills should pass but the question still remains when these funds will be available.

Consumers are obviously depending on these USDA loans and are holding their breath hoping to close on their contracts by September 30th.

Another problem that hovers over these consumers is that banks are not changing any parameters until they know for certain that these bills have passed. Then they will proceed with the long line of borrowers.

These delays are not long affecting the morale of homeowners, but is equally disappointing to real estate agents, loan officers and of course, the lenders need to make these loans to keep the economy heading upwards.

But the one thing St Louis refinance analysts strongly agree on is that by the time Congress passes this new funding, there will be a massive backlog of borrowers who may still not get their home mortgage by the September 30th closing.

It would be a shame for these potential borrowers to lose out on their dream home, the home buyer’s tax credit and the low interest rate they may have been locked into or waiting to receive.

Thus, let us see how Washington and the current administration addresses this new appropriation of funding for the USDA and hope that all home loan applicants will truly benefit and get their new home. The economy needs this as well.

Visit this website to learn more about a St Louis home mortgage. Stop by Floyd J. Tapia’s site where you can find out all about St Louis loans and what they can do for you. We invite you to call us at 877-334-0210 or 314-334-0210.