re: The High Cost of a Home Is Turning American Millennials Into the New Serfs

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Mingo Was His NameO

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Let's say those other costs are 20 or even 30%, that's still 40-50% higher income compared to rural areas. That's a significant portion. For myself, my starting pay was probably in the 10-15k higher range so that's minimum 5 grand I'd be giving up.

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The article quoted earlier does not at any point mention that 40-50% higher income is experienced in urban areas versus rural.

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I'm not saying this is incorrect,

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I know its not correct. I've closed a litany of people as an originator and as a closer using this program. In fact I actually closed on my home using USDA's RD Program (I live in a "rural" area on the census map). I'm quite familiar with it.

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hut what is the percentage of people that would realistically choose where to live by the way they can finance their house? It's really just a "bonus." You can't expect people to choose their location based on that.

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People do it relentlessly in my area. This isn't anecdotal experience, either. When the crash hit a decade ago, the only 100% money left was bond programs, niche programs and RD. USDA RD Loans were FLOODING the USDA's local offices and the backlog for them to process and sign off is still 21-28 business days in some instances. The program routinely completely runs out of funding each year.

In 2014, there was a $900,000,000 Budget for Section 502 (USADA Rural Development Direct Loans) Mortgages and $24 billion in Section 538 (RD Guaranteed; think Chase Bank originating the paper based on RD guidelines and then submitting to USDA's RD Review department, getting signoff and then servicing it for USDA on their behalf).

I'll throw those numbers out there again...Almost $25 BILLION for these types of mortgages in 2015.

In 2016 and 2017? The same amounts were allotted and/or allocated. $75 billion dollars in loans over 36 months. You telling me this isn't a popular program?

...and this is where things get sticky for me from a context standpoint which is where I initially waded into the discussion. The Baton Rouge "suburbs," of Livingston Parish and Ascension Parish (think Prairieville, Dutchtown, Live Oak, Denham Springs, Walker, Etc) are all considered, "rural," on the census maps while Baton Rouge is considered "urban or suburban".

Current day Denham/Live Oak/Walker aren't exactly rural compared to some place like French Settlement, Frost or Killian. But the census Map gives them this power that allows a litany of homeowners to harness more buying power to afford more home at a lower cost more quickly than folks the same age trying to buy in Melrose, Lake Beau Pre, or Beauregard Town in Baton Rouge proper.

This is far from anecdotal evidence. You can check my numbers as they're pulled from the Summary USDA FY 2017 Budget Summary (page 44 on the page listing, 49 on the PDF itself I believe.

But keep telling me that people aren't utilizing this program and choosing where they live because of it? LP, AP and Tangi have grown like weeds EXACTLY because of this program and programs like it. I disagree whole-heartedly with your assertion otherwise and these stats are what fuels it.