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USDA OUT OF MONEY...?

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Mortgage and Lending with Evergreen Home Loans NMLS 3182 MLO-108328

photo courtesy of Francesco Marino at freedigitalphotos.net

The rumors are already swirling that USDA could be running out of money to fund loans in the near future.  I received the following e-mail this morning:

"Loan Officers,

This message is to notify you that program funding for the single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.

Once funding is exhausted, the Agency will not issue Conditional commitments "subject to receipt of appropriated funds."  This is because it is not certain when additional funding will be available.

Limited Funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina or Rita.  Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited."

What exactly does this mean for buyers who have USDA pre-approvals or transactions pending?  According to our reps, it is business as usual... unless otherwise notified.

Please contact me for updates on the status of the USDA program.

 

 

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