USDA Runs out of funds!!

By
Mortgage and Lending with Paramount Residential Mortgage Group, Inc NMLS# 262906

 

There have been quite a few rumblings about the USDA program over the last few weeks, and I just got some concrete news – USDA is on track to run out of funds by the end of April. Following is a portion of the letter from them:

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.

USDA’s fiscal year ends on September 30th, and there’s no indication that there will be any interim funds allocated for the program. Previously when USDA had funding shortfalls wholesale lenders would continue to fund loans, being assured that funding was coming – That’s not the case right now because of a 5-6mo gap.

I got an email earlier today stating that Wells Fargo (Probably the largest USDA lender) has ceased accepting USDA loan application effective immediately. We have other lenders that are continuing to fund USDA loans until funds run out, but I’m sure they’re going to be slammed with last minute volume.

I would say that to be guaranteed funds the loan needs to be clear to close with USDA’s sign-off by April 23rd.

Obviously this is the only program that you can get 100% financing, other than VA – If you have anyone that needs 100% there’s not much time left & they better move quickly!!


 

Please call me if you are in the market for a home loan. I can get it done!!

============================= 

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I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

 I can be reached at the following:
   *Phone: 386-754-8500
   *Email: 
dan@meridianFL.net

 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. KARIN SMITH 03/12/2010 07:13 AM
Topic:
ActiveRain Community
Location:
Florida Columbia County Lake City
Groups:
Realtors®
1st Time Buyers
Almost Anything Goes
"Whacked"!!!
Club Chaos
Tags:
usda
usda loans
usda rural housing loans

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Rainer
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Ron Tiller
Star Referral - Grand rapids MI - Grand Rapids, MI

Too bad. It's about the only zero dowm program left.

Mar 12, 2010 07:16 AM #1
Ambassador
1,726,157
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Dan...

I heard about this today. We do (did) a lot of them here so this hurts our business.

Mar 12, 2010 08:42 AM #2
Rainer
74,375
Dan Magstadt
Paramount Residential Mortgage Group, Inc - Lake City, FL

Ron - Yes, other than VA that's about the only 100% program out there

Richard - This hits us hard too - Our entire county was USDA approved & most borrowers opted to use that program.

 

Just when we thought things were loosening up....

Mar 12, 2010 08:49 AM #3
Anonymous
Jessica

This program is our livelyhood.  90% of our business.  This is whatI just received from our local RD offical.  "They have a couple of proposals that are pending but don't know which way it will go or when anything will be approved.  I know that there is a lot of support both from Congress and industry reps to get something done soon so I am still hoping it will be resolved by the end of April."

 Have faith in God-not our Congress fellow lenders!

Apr 15, 2010 04:06 AM #4
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Andy Brown
Climer School of Real Estate - Arctic Bay, YN
Best Real Estate Training in Florida

Dan, too true!

good blog

Andy Brown, www.OnlineFloridaMortgage.com

Aug 27, 2010 04:07 AM #5
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Dan Magstadt

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