***USDA Funding - Possible Delays after 10/1/2011

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Mortgage and Lending with Guaranty Bank & Trust Co NMLS ID #68160

USDA UPDATES

 

USDA has advise in an unofficial memo, that effective 10/1/2011, USDA will not issue “subject to conditional commitments” as they normally do every year. They have funds that will last through the end of the month, so all loans with conditional commitments by 9/30/2011 will be ok, and can fund AFTER 9/30/2011.

On October 1st, however, they will stop issuing commitments until congress approves their budget (even though it’s a self-funded program congress needs to approve) and funds are loaded into their system. USDA anticipates this could delay loans 2 weeks from getting clear commitments.  So what does this mean?

1.     Loans closing within the first two weeks of October may not happen since clear commitments will not be issued (Estimation from USDA- again non official).

2.     We can still underwrite, approve files, AND Branches can still send the files to their Local RD offices, but they will sit and wait until the funds have been uploaded into their system and a clear commitment can be provided

3.     Remember, WE ARE ALL In the SAME BOAT. NO other competing lender will be able to close ANY USDA loans without a clear commitment.

 

  

For more information please contact DOUG CAPPS at (662) 429-5100 ext. 105.  NMLS ID #68160.

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632 is a "MS and TN Licensed Mortgage Company."  NMLS ID #2289. An Equal Housing Lender.  All loans are subject to credit approval and compliance with investor guidelines.

Know your mortgage options!

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Topic:
Mortgage / Finance
Location:
Mississippi De Soto County
Groups:
Mississippi Real Estate Professionals
USDA Rural Development Loan Group
Tags:
usda guaranteed rural housing
fairway mortgage

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Rainmaker
171,062
Greg Miller
Ruoff Home Mortgage - Sarasota, FL
Florida Home Loans - Conventional,FHA,USDA,VA

Explained very well Doug. This do nothing Congress is really getting old. Funding dried up last year, Flood insurance halted twice last year. Now the yearly budget snuck up(Heavy Sarcasm) on them.

Oct 02, 2011 01:33 PM #1
Rainer
89,949
Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

Good Morning Doug, Thanks for the update on RD loans.  This could be critical information for buyers agents.  This really holds true for those of us buying HUD listings.  We have 45 days to close or it cost our clients $25.00 a day for an extension. 

Oct 04, 2011 01:14 AM #2
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Rainmaker
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Doug Capps

MMS, CLO, CRMS
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