USDA Rural Housing – We can Still Lend after Funds Run Out!
Rural Development which oversees the USDA rural housing loan program will run out of its 2010 funds by sometime in May 2010. Most lenders have stopped doing the program and have even given false information that the program is out of money. There is still funds available and lenders can still lend on this program. When the funds run out if RD will issue a conditional commitment then the lender has the option of lending the money and waiting on the guarantee when new funds are issued. This can only happen if RD gives a conditional commitment. RD was not going to issue conditional commitments after the funds ran out for this year until now!
When funds run out RD will not issue conditional commitments but the upfront guarantee fee will increase on this new commitments from 2% to 3.5% on purchase mortgages. So, yes you can still get a USDA loan and you will still be able to get one after the funs run out.
You can Apply for USDA Loan Now – APPLY NOW
Here is a letter from Rural Development.
From the National Office in Washington DC
Single Family Housing Guaranteed LoanProgram
Fiscal Year 2010 Appropriated Funds – Issuing Conditional Commitments once Appropriated Funds are Exhausted
The Single Family Housing Guaranteed Loan Program (SFHGLP) will issue Conditional Commitments once currently appropriated funds for FY 2010 are exhausted. Conditional Commitments will be issued subject to the availability of funds and Congressional authority to charge a 3.5 percent guarantee fee for purchase loans and a 2.25 percent guarantee fee for refinance loans. Please see the attached document for further details.
Questions regarding this notice may be directed to any representative of the SFHGLP or your State SFHGLP Coordinator.
If you need to get pre-approved for a USDA loan, please call me, John Thomas, at 302-703-0727 or you can apply online now.
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