USDA will begin issuing subject to conditional commitments effective today.
In turn, Chase Rural Housing will purchase these loans with subject to conditional commitment language. The guaranty fee on purchase transactions will be 3.5% and on refinances the fee will be 2.25%. Loans that already have conditional commitments at a guaranty fee of 2.00% are still valid.
Review the enclosed Chase Rural Housing Announcement before requesting locks on USDA loans. It is important to note that the lender assumes all loss default risk for the loan until funds are available for Rural Development to obligate. We are hopeful that USDA will receive funds in the near future. To helpmitigate default risk, we will NOT ALLOW interest credit on USDA loans until further notice.