USDA Rural Housing Loans are running out of money! Now what?
The President has signed the Agriculture Appropriations Act for fiscal year (FY) 2010. Since October 1, 2009 we have operated under a Continuing Resolution (CR) with carryover funds from FY 2009 and funds allocated under the CR. Once the bill is signed into law a lapse of three to four weeks occurs before program levels receive funds under the bill from the Office of Management and Budget (OMB).
Due to a high demand for purchase funds, it is anticipated CR and FY 2009 carryover funds for PURCHASE transactions will be exhausted by October 27, 2009, if not sooner. Refinance funds under the CR and carryover from FY 2009 remain available. During the lapse of funding for purchase transactions, Rural Development will continue to process and issue Conditional Commitments “Subject to receipt of Congressionally appropriated funds.” Business will be conducted as usual.
As you can see from the following, USDA Rural Housing is currently using carryover funds from 2009 and expect to have all of those exhausted by next Wednesday, October 27. There will be lenders who will not be able to close and fund USDA Rural Housing mortgages for a few weeks.
NORTHSTAR MORTGAGE GROUP IS NOT ONE OF THOSE LENDERS! I want to make sure that you understand that we will still be able to close and fund mortgages for purchases under the USDA Rural Housing Program even when they are issuing conditional commitments and waiting for the funds to be released. This is huge due to the timing with the expiration of the First Time Home Buyer’s Credit!
If you have a client that is doing a USDA Rural Housing mortgage and closing in November, make SURE you ask the lender TODAY if they can fund with a conditional commitment while USDA is securing the 2010 funds; if not, you need to have your client move their mortgage so that they do not lose the opportunity to receive the first time home buyer’s credit, as it expires on November 30 and with the Thanksgiving holiday right there at the end, they should be closed on or before November 23 to make sure that they get it!
I hope that you remember us if your clients’ current lender is unable to do their mortgage!
Visit the USDA Loan Expert website to get started!