Rural Development ran out of funding in May. That's the bad news.
The good news is that the House has signed the Bill appropriating additional funding, and the Senate is currently reviewing it: http://www.opencongress.org/bill/111-h5017/show.
It also appears the Guaranty Fee for USDA will increase on purchases from 2% to 3.5%. USDA also announced that they are planning to issue Conditional Commitments at the higher Guaranty Fee, subject to funding being available.
This is an important breakthrough as up until this year, when USDA ran out of funds, they issued Conditional Commitments as they expected Congress to provide new funding. This year they originally said they would not be issuing Conditional Commitments.
For Golf, if the USDA does begin issuing Conditional Commitments that means we are likely to start funding USDA loans again as we have two USDA investors and at least one has historically allowed us to fund on the Commitment, holding onto the loans and then selling the loans once the Congress approves the funding.
We should have more news very soon but the so far the prospects of 100% conventional financing for income qualified folks on Bainbridge Island returning through USDA funding is looking very good indeed.
See the USDA Washington website for more information about this program that Golf offers at:
http://www.rurdev.usda.gov/wa/
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