USDA Rural Development Home Loan Program – Running out of funds Update 06/01/10
USDA Has Funds Available – For more information go to : USDA Has Funds
You may or may not have heard, USDA has announced that they anticipate funding for the guarantee program will be exhausted by the end of April. This announcement is different from the past announcements regarding exhaustion of funds, in that this time new funding is not certain. USDA will not be issuing conditional commitments with the conditional statement “subject to appropriation of funds”.
We have contacted our investors to inquire as to what their position is relative to this new announcement. We are being told that guidance is forthcoming. Upon receipt of this guidance, credit policy will issue Academy’s policy. Until such time, we will continue to process, underwrite and close your USDA loans under current guidelines.
The following is the official statement made by the USDA Single Family Housing Guaranteed Loan Division
May 10, 2010
Notice of Funding
This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.
Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.” This is because it is not certain when additional funding will be available.
Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita. Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.
