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.
ABOUT TED CANTO
Ted is an experienced Mortgage Advisor for the last 13+ years and is also known for his mortgage commentary and internet workshops within the real estate community. Also known as "The Mobile Mortgage Pro", Ted has honed the power of the smart phone, laptop, tablet computing, text, email and social media to ensure that he is always accessible to his clients' “wherever, whenever” to meet their needs. Ted has helped thousands of families finance their new home or refinance their current home in the Arizona and California market. Call, text, or email him to discuss your home financing @ 480.650.8602 or ted@tedcanto.com
Ted Canto
