Perpetual USDA Loan Funding PASSED!
USDA Loans May Go Uninterrupted
That’s right USDA Rural Home Loans get a reprieve. Just this morning HR 5017 passed the House Financial Services Committee which is the first step to gaining perpetual uninterrupted funding for USDA Rural Home Loans.
Next, the USDA Rural Home Loan supporting bill HR 5017 moves to a vote in the House.
Once it passes, USDA Rural Home Loans will be self sustaining and not rely on tax payer dollars for continuation.
The USDA Rural Home Loan will have some changes, such as a possible increase of the USDA Guarantee Fee from the current 2% to a possible 4%. The USDA Rural Home Loan may also begin to look more like an FHA product with the POSSIBLE introduction of a monthly mortgage insurance payment.
Even with an increased USDA Guarantee Fee and a possible monthly mortgage insurance payment, the USDA Rural Home Loan will continue to be the most cost effective way to buy a home with zero money down.
Stay posted for updates to this story.
To apply for a Guaranteed USDA Rural Home Loan click on the Get Started tab above or click here. You can also ask a question about Guaranteed USDA Rural Home Loan on Get Started tab.
I’d love to hear your comments on this new way of funding USDA Rural Home Loans below.
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April 23rd, 2010 at 11:36 am
Do you think this will change any current criteria to USDA loans in process? I was granted a conditional commitment through July 1, 2010 and would love to know that I will not be subject to these changes.
April 23rd, 2010 at 1:44 pm
@ John – That will depend on your lender and how far into the process you are. I would bet that if the changes are made PRIOR to obtaining the RD Guarantee, then the changes would impact the loan. If the RD Guarantee has been obtained prior to the changes, you should be okay.
May 6th, 2010 at 7:37 am
Any new updates on the House vote?
May 20th, 2010 at 8:09 am
@ Rod – No updates yet. A memo is expected anytime…
May 23rd, 2010 at 5:44 pm
Paul,
I heard rumor maybe October? Anyone out there doing USDA loans need to start calling now. I called Washington and they would not comment on a time frame. Most of us have buyers that can not come up with the funds for FHA.
May 26th, 2010 at 6:30 am
@ Kathy – See this USDA Loan update. It should be finalized before the long Memorial Day weekend.
May 26th, 2010 at 6:31 am
They are discussing it again this morning and are expected to finalize it before the long Memorial Day weekend.
June 3rd, 2010 at 11:28 pm
We were in final stages of escrow when the fund ran out of money, do you think we will be seeing the funding reinstated before the June 30 th deadline for us to qualify for the $8000 tax credit?
June 4th, 2010 at 7:12 am
Lisa – Call your lender to find out. Some USDA Lenders are back in the game. We are now funding USDA Loans.
June 6th, 2010 at 1:24 pm
I have been trying to get a USDA loan since April 2010, I have been working with a loan manager at IMC in Monroe N.C. But she tells me their is nothing she can do until the government makes a decision about reinstating the loan money. But what I think it is, is that they are out to get me.
June 8th, 2010 at 8:20 am
Trisha – No, the USDA is not out to get you. Your loan manager is correct in that until the system is fixed to reflect the new guarantee fee, many lenders are not able to make USDA loans. If any aspect of the loan requires a waiver (credit, property, income, etc.) then a complete package must be sent to RD for review as opposed to the streamline package. Many lenders have not figured out how to correctly underwrite with the new guarantee, work with the waivers, and then submit a full package to RD.