Delaware USDA Rural Housing Funds to Run out in April 2010
The funds available to guarantee Delaware USDA Rural Housing Loans will run out by the end of April 2010. Every year USDA will run out of money before the end of its fiscal year in September. This does not normally affect borrowers because the lenders will lend on a conditional commitment from USDA to guarantee the loans once the funds have been appropriated later in the year or beginning of next year.
The problem now is there are a project 150 million shortfalls after the money runs out in end of April, so the government will not be able to cover it so is going to cut off approvals after the money runs out. The program ran out of money last year early as well but got money from the Stimulus package so the program was still available the rest of the year. There is no stimulus money available this year.
What this means for Delaware Home Buyers trying to use the USDA Rural housing program, get under contract ASAP and get your funds reserved before they run out in April. Otherwise, you won’t be able to get 100% financing and will have to get a Delaware FHA loan which requires 3.5% down payment.
If you would like to apply for a Delaware USDA Rural Housing Loan, please call me at 302-703-0727 or you can also APPLY ONLINE.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713