USDA loan update. Don't despair just yet!
Another update on the status of USDA fundings. Thanks for the post Paul!
Good morning! I just received word from our Director of Operations that USDA will be funding loans for us for 90 days after a Conditional Loan Commitment is issued. As many of you have read, USDA is anticipating running out of money earlier this year. They recently issued a bulletin stating the expected date to run out of funds is April 30 of this year. This is nearly six months ahead of schedule. Usually USDA runs out of funds in October.
What the above means is if you get a loan commitment from USDA before the deadline, you still have up to 90 days to have the loan funded. In other words, the drop dead date of April 30 is not etched in stone; especially if you get a loan commitment from USDA.
The other encouraging news is one of our investors is working with Washington D.C. on appropriating extra funds for USDA. I will keep you posted on this development. In talking with our funding manager here she stated that funds have been frozen in the past only to loosen up a few weeks later.
Again, I'm encouraged by this news. Have a great day and keep on truckin'!
Paul McFadden
Comments(1)