USDA Loan program for 100% financing
UPDATE: As of May 2010 the USDA RD Home Loan Program was Re-Funded and aside from some minor changes the program is going strong and will continue to do so for the foreseeable future. In the interim we were one of the few banks in Texas that continued fund this program
USDA the folks that grantee the rural development loan for homes sent out an email to all USDA Rural Development lenders that stated:
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.
We apologize for any inconvenience this may cause you. Should you have any questions, you may contact the Single Family Housing Guaranteed Loan Division
Usually USDA Rural Development runs our of money in October and is re-funded by November and USDA continues to issue Conditional Commitments and closing happen pretty much on schedule. This year due to the popularity of the program USDA Rural Development will be running out as early as mid April. In Fact many of the larger banks have stopped accepting programs for USDA Loans. There are some great concerns that the distraction on other items important to congress that the program may not be funded until it’s normal November time-frame.
What can I do about it?
Realtors, Buyers and Sellers the best thing to do is to contact members of congress on the committees and ask them to fund the USDA home loan program sooner so the during the spring and summer buying season will not be slowed by the loss of this important program. A list of the members of the Committee and subcommittee can be found here.
Until Next time..
-Henry Daniels your CMPSI Certified Mortgage Coach
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