USDA Funding (continued)...

By
Mortgage and Lending with HomeStar Financial Corporation

Recently USDA announced concerns regarding the availability of funds for fiscal year 2010 and that funding will likely be exhausted by the end of April 2010. According to Chase Rural Housing Services, the remaining funds for purchase transactions for the USDA Guaranteed Rural Housing Program, effective March 15, 2010 are 3.9 Billion dollars.

Rest assured, once a loan has been approved by USDA, the loan will not be affected by the lack of funds.  When USDA approves a loan they issue what is termed a Conditional Commitment (RD Form 1980-18). The Conditional Commitments are issued for a period of 90 days, so only those loans which have not received commitments issued by USDA could be affected by the funding issue if funds are exhausted.

Many agents and buyers have expressed concerns regarding the funding issues surrounding the USDA Rural Housing program.  However, very few have actually inquired as to what they can do to assist in making sure that funding continues for the program.  We encourage everyone to contact their members of congress regarding the funding issues surrounding the USDA Rural Housing program and express the potential counteractive effect the shortage can have on our battered housing industry. 

Take action today!

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Rainer
44,219
The Villages Florida Real Estate
RE/MAX Premier Realty - The Villages, FL
Living and Loving Florida!

Thank you for the info. I have been trying to follow the issues on the USDA loans.

Mar 17, 2010 02:23 PM #1
Rainmaker
300,301
Jeff Wilmoth
HomeStar Financial Corporation - Newnan, GA

Take action & contact congress! The program is run very efficiently and statistically, it has the lowest default rate of ANY loan program. Politically, the administration will want to continue any positive program, especially in an election year.  Hopefully the political wheels will turn and funding will be made available soon.

Mar 17, 2010 02:28 PM #2
Rainmaker
344,099
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Jeff, that's great news! I was a little concerned about the lack of funds, but this gives me a little more peace... Thank you!

Mar 17, 2010 02:53 PM #3
Rainmaker
300,301
Jeff Wilmoth
HomeStar Financial Corporation - Newnan, GA

Hi Don...we're not out of the woods yet.  However, the figures indicate that there should be enough funds to make it past April.  Our sources tell us the issue could be resolved by the end of April.  Nonetheless, pester your congressman, NAR, etc and push this issue thru...lenders can't do this alone, especially given the reputation for the most recent years.

Mar 18, 2010 06:46 AM #4
Ambassador
591,131
Julie Chapman
DR Horton - Ormond Beach, FL
New Homes Sales Ormond, New Smyrna, Daytona Be

We are out of funds.....and no one has done anything that I can see - it is a very unethical government that gives away $8,000 tax credit but refuses to fund USDA loans so buyers can take advantage of these tax credits.  

May 23, 2010 10:37 AM #5
Rainmaker
300,301
Jeff Wilmoth
HomeStar Financial Corporation - Newnan, GA

Julie,

Yes, they did run out of funds on the 12th.  There is a new bill currently in the Senate that is supposedly going to be voted on by the 31st...sit tight.  Those buyers have until June 30th to close on the tax credit issue.  We will have a new blog hopefully sometime this week with the current updates.

Jeff

May 23, 2010 01:50 PM #6
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