I can go months without having anything to update on USDA/Rural Mortgages, but then all of the sudden the notifications start to pour in. The latest notification that I just received, right after one of my USDA/Rural loans closed, is that USDA/Rural Is Out Of Funds In Connecticut, in fact they have run out of funding for most states.
Running out of Funds is normal for USDA, and we have been very fortunate that the funds have lasted as long as they have this fiscal year. Normally USDA has been running out of funds late Spring, early Summer, but this year they received almost twice as much funds as they had in the past.
The good thing is that October 1st is the beginning of a new fiscal year for USDA, so hopefully new funding will be received very soon. Just because USDA/Rural Is Out Of Funds In Connecticut as well as many other states, is no reason to not put USDA Loans into process, because USDA does not reserve the funds for each loan until the loan has been underwritten, approved by the Lender, and sent to USDA for funding. That means that by the time the loan has been underwritten, and approved by the Lender, USDA may have been granted new funds, or at lease close to receiving more funds. As long as everyone understands the process, and is on board with it, then it will not surprise anyone if there is a little wait at the end.
I will try to post a blog as soon as I know that USDA has been funded again. In the mean time don't let the news that USDA/Rural is Out Of Funds In Connecticut keep you from making your Buyers and Borrowers aware of the USDA/Rural Program. Funding hopefully will be restored soon.
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Info about the author:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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