First-time homeowners in USDA housing program have a very low foreclosure rate

First-time homeowners in rural America are not part of the wave of foreclosures sweeping the country. Russ Davis, administrator of the Department of Agriculture's housing programs, says foreclosure rates among rural dwellers are much lower than their metropolitan counterparts.

"This summer we posted our lowest foreclosure rates that I’ve seen in the 40 years where I’ve seen statistics," Davis told the Agri-Pulse newsletter. "Delinquencies were much lower than the private sector." Davis says his program's low foreclosure rates can be explained by a number of factors, including the department's recognition of the nature of rural work. "There’s a lot of seasonal work, shift work -- a lot of income patterns that are different from other parts of the country," he says, and lending policies reflect those patterns. At the same time, rural houses were not part of the "bubble," where overvaluation led to a housing market crash. (Read more; paid subscription required)