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May 11th 2010 USDA Authorizes Conditional Commitments

By Jeff Wilmoth

Mortgage and Lending with Barrett Financial Group, LLC NMLS# 206798

May 11, 2010 11:12 AM

Update for the USDA Guaranteed Rural Housing Program

Effective May 11^th 2010

USDA has authorized the issuance of Conditional Commitments for the Single Family Housing Guaranteed Program (SFHGLP) after currently appropriated funds are exhausted. So what does this mean? Well, think of it as Washington's early Christmas present to the real estate community and the families in rural communities throughout North America.

USDA predicts that currently appropriated funds will be exhausted on or after May 12, 2010. When all funding is exhausted, USDA will continue to accept complete loan applications and issue Conditional Commitments "subject to the availability of funds and Congressional authority to charge a 3.5% guarantee fee for all purchase transactions and a 2.25% guarantee fee for refinance transactions".

According to USDA, lenders are allowed to continue to process guaranteed loan requests, receive Agency Conditional Commitments, and close loans during this timeframe.

HomeStar remains committed to the USDA Rural Housing program. HomeStar will continue to originate process and underwrite loan applications for Rural Development Guaranteed loans. HomeStar will submit complete files to USDA as allowed by USDA.