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!!
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: