USDA/Rural Is Out Of Funds In Connecticut

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

I can go months without having anything to update on USDA/Rural Mortgages, but then all of the sudden the notifications start to pour in.  The latest notification that I just received, right after one of my USDA/Rural loans closed, is that USDA/Rural Is Out Of Funds In Connecticut, in fact they have run out of funding for most states.

Running out of Funds is normal for USDA, and we have been very fortunate that the funds have lasted as long as they have this fiscal year.  Normally USDA has been running out of funds late Spring, early Summer, but this year they received almost twice as much funds as they had in the past.

The good thing is that October 1st is the beginning of a new fiscal year for USDA, so hopefully new funding will be received very soon.  Just because USDA/Rural Is Out Of Funds In Connecticut as well as many other states, is no reason to not put USDA Loans into process, because USDA does not reserve the funds for each loan until the loan has been underwritten, approved by the Lender, and sent to USDA for funding.  That means that by the time the loan has been underwritten, and approved by the Lender, USDA may have been granted new funds, or at lease close to receiving more funds.  As long as everyone understands the process, and is on board with it, then it will not surprise anyone if there is a little wait at the end.

I will try to post a blog as soon as I know that USDA has been funded again.  In the mean time don't let the news that USDA/Rural is Out Of Funds In Connecticut keep you from making your Buyers and Borrowers aware of the USDA/Rural Program.  Funding hopefully will be restored soon.

 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Location:
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Groups:
Realtors®
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USDA Rural Development Loan Group
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Rainmaker
753,720
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

This is a good program,it has help a lot of buyer hopefully the funding will will come back sooner than later,  E

Sep 29, 2012 11:13 PM #1
Rainer
407,272
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Good morning George. We are out here in Michigan too. Some lenders are still loaning on them but I feel way better once they have refunded.

Sep 29, 2012 11:20 PM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed & Tracy yes it is an excellent program, and I wish I could do it in more towns than I can.

Randy hopefully the funding will be restored soon.

Sep 30, 2012 04:12 AM #3
Rainmaker
593,063
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

That's not uncommon.

If they don't disperse all their funds each year they get less last year.

Bill

Sep 30, 2012 05:54 AM #4
Rainmaker
1,317,701
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I know USDA ran out of funds for refinances.  Have they run out of all funds now?  I know they said they would not eliminate more towns until 2013?  What have you found out?

Sep 30, 2012 01:07 PM #5
Rainmaker
2,312,295
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I do business with a number of lenders that will close these loans and keep them in portfolio, as long as USDA has approved them, until USDA is funding again.

Oct 01, 2012 10:00 PM #6
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