USDA has announced it will not receive its appropriations for fiscal year 2010 by October 2009. It will experience a delay in approval of funds and will likely not see them until early 2010. However, this will not affect "all" lending on USDA Home Loans.
USDA will make conditional loan commitments until the funds are appropriated. USDA will allow lenders willing to assume the risk of approving such loans in case of default until appropriations are made and as along as they are able to carry the balances until USDA can purchase them from the lenders warehouse lines.
Your best bet is to check with your lender and find out if they are still able to fund loans under the USDA Loan Program until they receive Congressionaly appropriated funding.
If you have any concerns and/or questions on how this may affect your clients, feel free to contact me at your convenience.
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