USDA Loan Program Out Of Funds Again? You Must Be Kidding..
USDA Loan Program Out Of Funds!
Yes it’s true and it will impact a majority of home buyers looking to use the USDA Loan Program to fund their purchase transaction. How will it impact you? It won’t, if you follow my advice..
So grab a pen and take some notes.
In A USDA Loan Program Memo Issued October 1st..
The USDA announced that funding for the USDA Loan Program will not be available for a short period of time at the beginning of the Fiscal Year 2011, which by the way starts on October 1st 2010. The funding for the USDA Loan Program will become available again once “Congressionally Appropriated Funds for Purchase Transactions” are made available.
Can You Still Get Into The USDA Loan Program?
Absolutely you can.. If you apply for a USDA Loan through a lender (LIKE US) who will fund off of a Conditional Commitment Letter. Many lenders at this time have continued to stay away from the USDA Loan Program until the funds have been appropriated. If you are in Arizona, we can provide the USDA Loan Program for you. If you are NOT in Arizona, head on over to MyFHAMortgageBlog.com and search for someone in your state.
How Does The USDA Conditional Commitment Work?
- We underwrite your USDA Loan application and once we issue the approval will send it to the local Arizona Rural Development office.
- The Arizona Rural Development office will review the appropriate portion of your loan application to verify that it fits into the USDA Loan Program. Once they approve it for the program they will issue a Conditional Commitment.
- We close the loan as scheduled and you move in. The following steps are for the lender and the USDA only and do not require your assistance, other than making your regularly scheduled payments.
- Once the funds are appropriated, the USDA will “Obligate” funds for your specific loan.
- Once the USDA has “obligated” the funds it will process the Conditional Commitment letter and is able to fund it and issue the USDA Loan Guarantee.
Apply for a USDA Loan Online Now: Loan Application
So if you do your homework and apply for the USDA Loan Program with a lender (again, like us) who is funding off of the Rural Development Conditional Commitment letter, you will be able to fund your USDA Loan and move on in.
I’d like your opinion…
What do you think? Will the interruption of available USDA Funds cause a further slowdown in an already messy mortgage market? Or will the ability of “certain lenders” to fund off of a Conditional Commitment letter keep the flow going and most home buyers will get their loan without interruption?