USDA Rural Home Loans on the Senate Floor right NOW!

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Education & Training

The USDA Loan has been on hold with the Rural Development offices across the country as they “ran out” of funds for USDA Loans.  There are several bills on the table that would eliminate the funding problems for USDA Loans and one is being reviewed in the Senate right now.

The most immediate need for home buyers who need a USDA Loan is to get the funding going right now.  H.R. 4899 is the Disaster Relief and Summer Jobs Act of 2010 which the Senate is discussing today at 3:00.  If it passes it will provide $102.7 million to the USDA Loan program. That doesn’t sound like a lot, does it?

The way the USDA Loan guarantee works is that the buyer currently pays a 2% USDA Loan guarantee fee and the remaining 1.5% is subsidized by the USDA.  The replenishing of funds replenishes the subsidy, so $102.7 million could help provide USDA Loan guarantees throughout the end of 2010.

The other bill on the table is H.R. 5017 the Rural Housing Preservation and Stabilization Act of 2010 which would put the full 3.5% guarantee onto the home buyer and also introduce a monthly mortgage insurance payment for USDA Loans which would make it look more like an FHA loan product.

Once we hear more on the Senate discussion, we will post them here.  If it passes today, we could see lenders begin to fund USDA Loans right away.

Paul Dunn - (520) 225-0380
Tucson's #1 FHA Mortgage Loan Originator

USDA Rural Development Home Loans for Arizona

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Arizona Mortgages
Arizona Real Estate
Tucson, AZ Real Estate
USDA Rural Development Loan Group
Tags:
usda loan
arizona
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Anonymous
dave

the bill has passed i believe so do i have to wait for pres to sign in( ten) day before i start my loan process? because i really want to make an offer on this house!!

May 28, 2010 01:45 AM #28
Anonymous
Kandi

What a GREAT BLOG! I too have been waiting for USDA RA Loan.  Has it passed?  Is there funding? 

Hoping to close before June 30th

May 28, 2010 06:04 AM #29
Anonymous
Kelly Jordan

Great Blog! This is the only place I've been able to find current, useful information. We are also waiting on the outcome so we can finish our home purchase. We are in AZ and are really scared we won't get our home or that we will miss out on the tax credit. Any updates are truly appreciated!

May 28, 2010 02:14 PM #30
Anonymous
DAVE

I FOUND A LENDER THATS GIVING CONITIONAL COMMITMENTS MAKING AN OFFER ON THE HOUSE TOMORROW

Jun 01, 2010 04:43 PM #31
Rainmaker
62,329
Paul Dunn
Tucson, AZ
former orginator

We are funding these NOW in Arizona.  If you need a lender out of state, let me know and I can provide a recomendation for you.

Jun 02, 2010 02:49 AM #32
Anonymous
Kelly Jordan

Our mortgage broker informed us today that the bill has to go back to the house for reconciliation and that funds will not be available on USDA loans for 5 weeks. This effectively puts us outside the time line for the tax credit. Is this actually true? We have not had good luck or communication with our broker up to this point. They drug their feet in the beginning before the funds even ran out, then we waited for the bill to pass and thought we would be ok, then he tells us about the latest hold up and that he "held our appraisal" to find out if we still intended to go for USDA funding. I'm afraid our broker has helped hold us back...any advice or information you can share?

Jun 03, 2010 11:24 AM #33
Rainmaker
62,329
Paul Dunn
Tucson, AZ
former orginator

I have not heard anything about an additional 5 week period... Your broker is probably on the level and giving you the best information he/she has available.  This is an unusual situation and it has caused much confusion throughout the industry.

The GUS needs to be updated ant that may take several weeks, however lenders are still doing manual underwrites and getting conditional commitments from RD allowing these to fund.  I have several that have been shipped to the local RD offices here and anticipate closing them within the next week.

If I hear different, I will post...

Jun 03, 2010 11:44 AM #34
Anonymous
mike

We have a conditional commitment from USDA, but our broker's lender won't finance USDA right now. If we transfer everything to another lending company will we be able to keep our place in line with USDA or will we have to start all over again?

Jun 03, 2010 05:16 PM #35
Anonymous
James Murphy

I need a lender in Delaware Paul, can you help me?

 

Jun 10, 2010 12:47 PM #36
Anonymous
Lori Langton

Well it is official that the $8K tax credit has been extended to September!  yay! 

Jun 17, 2010 01:39 PM #37
Anonymous
Kelly

Any news on when the USDA funding will be available? We are happy about the tax credit extension but now are running out of time on all the documentation - we need to close by July 12th. Does anyone see that happening?

Jun 17, 2010 04:50 PM #38
Rainmaker
62,329
Paul Dunn
Tucson, AZ
former orginator

Mike - starting all over again may be quicker.

 

James - I have contacts in Delaware.  Let me know if I can give you a name.

 

Lori - Yeah baby!

 

Kelly - Funds have been available for a while now.  Some lenders are still NOT funding them due to RD relations, but we are funding USDA loans regularly.  I have funded a few this week.  Please go to USDA Rural Home Loans for more info and to apply.

Jun 17, 2010 05:16 PM #39
Anonymous
Lori Langton

Any more news about when the $8K might be replenished?.  Now that the Tax Credit has been extended lets hope we can all get our loans closed before the Sept extension expires!!!!  

Jun 21, 2010 04:17 AM #40
Anonymous
jessica

is there anything new?/ it's now in some other commitee yes?

 

Jun 25, 2010 02:10 AM #41
Anonymous
Amy

we just received our commitment from our bank for a usda/rd loan, but it says conditional upon approved funding. we are supposed to close by July 29th, will we know by then if the funds are available?

Jul 05, 2010 06:08 AM #42
Anonymous
Kara Gomez

Any new info on when funding will be back we have been waiting to close for weeks!

Jul 06, 2010 05:57 AM #43
Rainmaker
62,329
Paul Dunn
Tucson, AZ
former orginator

Lori - the tax credit has been extended through September.

 

Jessica - Nothing new at this time...

 

Amy & Kara - We are funding USDA loans right now.  If you are in Arizona we can help you with a USDA Loan.  If you have your loan application in with a bank right now and are WAITING for funding, you could be waiting for a few more months.  You may be wise to get you application into a mortgage lender who will fund off of a conditional commitment.

Jul 06, 2010 06:41 AM #44
Anonymous
Linna Beavin

I am in Hawaii, can you tell how soon the USDA fund will be availabe?  I have a USDA loan in my pipeline and the clients eager to close right now. thank you,

Jul 08, 2010 01:20 PM #45
Anonymous
melanie

hAVE YOU HEARD ANYTHING ON USDA funding  our home is close to being finished and Im really worried Is there a vote coming up soon and when  oUR BANKER KEEPS WSAYING DONT WORRY but u cant help it thanks Mel

Jul 22, 2010 08:10 AM #46
Anonymous
tara

we live in Texas, and our USDA here told us that they won't be able to cut checks for funding till sometime in Oct. Is this true. And where i live is where i did my applicant with USDA but the house we found is 7 hours away from where we did our app at. If our home we are wanting is in an eligable area can we still get it or do we have to redue another app in that county the home is in.

Jul 30, 2011 03:03 PM #47
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Paul Dunn

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