Bill Evans of Jet Stream Lending always keeps me up to date on the latest mortgage news. Below is an email he sent me this morning outlining some worrying information about the USDA Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP). For any agents or buyers that currently have a Rural Development qualifying property under contract, this information is for you!
Rural Development Newsflash!
The Federal Government is operating under a Continuing Resolution (CR) covering the period from October 1, 2008 through arch 6, 2009. For the Single Family Housing Guaranteed Loan Program (SFHGLP), a guarantee level of $2.6 billion was allocated under the Continuing Resolution. Demand for the DFHGLP is at a historic high, and we anticipate this funding will be exhausted by January 9, 2009, if not sooner.
USDA Rural Development - the government - will continue to accept and process applications, and will issue Conditional Commitments "subject to receipt of Congressionally approriated funds." We expect congress to pass a Continuing Resolution allocating additional funds for Rural Development Loans.
Banks may continue closing loans under the SFHGLP, however, we expect the majority of banks will not fund these loans without the availability of government funds in today's environment.
What does this mean for you and your clients?
If you currently have a real estate transaction utilizing the USDA Rural Development Loan Program and it is set to close after January 9th, it may not fund for up to 3 months.
If your clients are in the process of obtaining a Rural Development loan anywhere other than Jet Stream Lending, check with that loan officer now. Ask if the bank intends t fund your clients' loans despite the lack of government money. If this is the case, Jet Stream Lending is ready and willing to close and fund your real estate transactions.
Jet Stream Lending has the resources to fund Rural Development loans despite the lack of government funds. We are committed to you and your clients with or without the funds and promise business as usual.
Thanks to Bill Evans with Jet Stream Lending for providing some really important information on Rural Development loans. As much of Northwest Arkansas property is designated as being able to get Rural Development loans, this is a great thing to know about and stay on top of.
Contact the Jet Stream Lending Team if you have a home loan need by calling them at (479) 254-9403 or visiting their website at JetStreamLending.com or contact me to find out more about the home buying process.
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Rural Development Newsflash from Jet Stream Lending of Northwest Arkansas
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