USDA Loans - Important funding information as of March 10th, 2010

 

 

USDA Loans – Rural Housing Loans

 

 

The Single Family Housing Guaranteed Loan Program (USDA Loans) will likely be exhausted by the end of April, 2010. This is a message that was delivered from the National Office in Washington D.C. as of today.

 

It was then stated that once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because the agency is not certain when additional funding will be available. And this might not be known until October, when the new budget comes out.  This is important to know and to understand.

 

 

This is a good reminder for all borrowers, realtors, and loan officers that aren't aware of this.  If you are a buyer that has been pre-qualified for a USDA loan, you need to speak to your loan officer as soon as possible. If you are realtor that has a buyer or the listing agent that has received a pre-qualification letter stating that the buyer has been pre-qualified for the USDA loan, someone needs to contact that borrower so they can contact their lender.

 

On another note, please beware of those web sites that offer USDA Loans,yet these sites make you think that you are dealing directly with the USDA themselves. I have come across several out there that look and feel like it was directly from the USDA them self.  I wrote about it here : Misleading advertising when it comes to shopping for mortgages and USDA loans and FHA loans - Misleading advertising as government agency sites.

 

 

For more information on USDA loans, please read :

USDA Loans - The Rural Housing Loan - The Basics

 

 

UPDATE :  For anyone that wants to read more about this, please read this post by Gerry Suarez.  He goes into some detail about the seriousness of this. Please read :

USDA Rural Development loans expecting to run out of funds by late next month

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc