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USDA Home Loans in TROUBLE for November 2009!

DARN... DARN... DOUBLE DARN! November will not go as planned for some!

We have a TON of customers closing in the next 10 days who think they are going to:

a) move in next week

b) use USDA Home Loan Financing for their 100% (no money down) financing

c) GET THE $8000 Tax Credit

Well, guess what BOMB just hit MY Email this morning?!?!?

FROM: Single Family Housing Guaranteed Loan Program, Washington DC

The President has signed the Agriculture Appropriations Act for fiscal year (FY) 2010. Since October 1, 2009 we have operated under a Continuing Resolution (CR) with carryover funds from FY 2009 and funds allocated under the CR.

Once the bill is signed into law a lapse of three to four weeks occurs before program levels receive funds under the bill from the Office of Management and Budget (OMB).

Due to a high demand for purchase funds, it is anticipated CR and FY 2009 carryover funds for PURCHASE transactions will be exhausted by October 27, 2009, if not sooner. Refinance funds under the CR and carryover from FY 2009 remain available.

During the lapse of funding for purchase transactions, Rural Development will continue to process and issue Conditional Commitments “Subject to receipt of Congressionally appropriated funds.” Business will be conducted as usual.

Once appropriated funds for FY 2010 become available for purchase transactions, you will be notified. Thank you for your continued support of the Guaranteed Loan Program.

Well, this puts a "kink" in those plans! Anybody want to guess how many people just lost $8000??? This is a GOOD reason for them to extend the Tax Credit!

If you are considering a purchase in Wake Forest, Johnston County, Durham, Apex, Holly Springs, Fuquay Varina or anywhere else in NC, and you want to use the USDA Home Loan /Mortgage program - please call Steve and Eleanor Thorne, Professional Mortgage Planners, 919-649-5058

Posted by Eleanor Thorne 919-649-5057 Cary Mortgage Loans on 10/23/2009 06:53 AM

Comments (12)

USDA Rural Housing Loan in the Mortgage / Finance Channel

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Originally posted at: Mortgage Lending, NC Style: USDA Home Loans in TROUBLE for November 2009!

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12 Comments on USDA Home Loans in TROUBLE for November 2009!

OCT

Thanks for the update on this new change. Did I say change? Do not get me started. Great post

No way. I have a few loans under these agency slated to close in November. Whats up with the Gov? Im sure this will get fixed quickly.

Eleanor -

Thank you for the information. USDA has become the "only game in town" in a lot of our market. This will have an impact there is a delay.

A buyers agent had USDA financing on 51 Acres, with farmhouse, already two weeks overdue for closing, fall apart last week, because the lender said the buyer may not apply for an agricultural exemption, thus changing his debt to income ratio too high. They overstated the buyers 2010 proposed taxes by about 7 times! Maybe this is the real reason they couldn't close it last week!

LET

lET SEE, WHAT WAS THE BIGGEST PROBLEM WE HAD TWO YEARS AGO?? HMMM. THIS TOO SHALL PASS. LOL

All those buyers that waited until the last minute to find a home and get this credit may be disappointed. Procrastination is not a good thing when working with Government programs.

You guys are right - I've been contacted by two consumers in the last 24 hours who said they thought that a "better" credit was coming out, and so they waited! WOW!

Eleanor - That sucks! Plain and simple. Government loans are great but they are like a ill mannered dog, lick your hand one minute then bite you. Hang in there I know how tough it is as I have been blind sided a few times in my career.

OCT

Eleanor,

Kink is probably all it is. The funding will come. Besides, it really looks like the tax credit extension will happen, maybe even with better terms.

OCT

Eleanor - This, too, shall pass. Some lenders go ahead and fund with the conditional approval, but delays can happen by having to switch at the later stages of the transaction which is alwasy frustrating and inconvenient.

OCT

Yes Eleanor, I would not want to be in that position, I think this happens every year. Thanks for the repost.

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