Many industry professionals have asked "When will we have more USDA funding."
Nationwide available funding was at about 600 million as of May 4th, 2010. As of May 7th, there were approximately $328 million in remaining funds available for purchase transactions. Currently funds are being exhausted at a rate of approximately 90 million per day. This means we may have funds for 4 to 5 more days as of May 7th, 2010.
At the state level, Georgia only had 2 million remaining at the end of May 4th, 2010. Georgia will possibly receive additional funding if there are available funds from the 600 million remaining nationwide.
So, what is going to happen? Basically there are 3 possible options available that could provide a short term as well as a long term solution:
Short Term Solutions:
1. USDA Administrators can move unutilized funds from other USDA programs to the Rural Development Guaranteed Program. Funds are available, however USDA Administrators at the National Level, thus far have chosen, not to exercise this option.
2. USDA Administrators can allow Conditional Commitments to be issued "Subject to Congressional Appropriation of funding". I do not understand all of the issues involved with USDA allowing this option. In the past USDA has allowed this option because future funding was imminent, however this year is different, since funds were exhausted earlier than recent years.
Long Term Solution:
1. Senate Bill S.3266, also referred to as The Rural Housing Preservation and Stabilization Act of 2010 is passed and signed by the president. My understanding is it may be at least 45 days before the bill will make the schedule for a vote in the Senate. Certainly we have no exact time frame to offer here as this is up to our governments system and our US Senators. Senate Bill S.3266 increases the Rural Development Funding fee so the program will be self funded, and no longer subsidized by the Tax Payers. If this Bill passes the program will not run out of money in the future. I have attached a time line of the bills progress thus far.
HomeStar remains committed to the USDA Rural Housing program. HomeStar will continue to originate, process and underwrite loan applications for Rural Development Guaranteed loans. HomeStar will submit complete files to USDA as allowed by USDA.
For further information on the USDA Rural Housing Program, please visit our website
Jeff Wilmoth | HomeStar Financial Corporation...Serving all of Georgia!
848 Jesse Jewell Parkway Gainesville, GA 30501
Cell 404.597.5662 | EFax 678.623.0444
Apply online: www.jeffwilmoth.com
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HomeStar Financial Corporation, NMLSR #70864
Georgia Residential Mortgagee Licensee #17368
Nationally Approved USDA lender USDA GRH program
FHA Lender ID- 1897400009
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