Today USDA announced that they WILL issue conditional commitments on USDA loans once funds are exhausted. This is a turn around from their previous stance and allows current USDA loans to close and fund before Congress passes the new legislation. However, there are a few changes to the normal guarantee fee. See below:SFH Origination News
From the National Office in Washington DC
05/11/2010
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.”
Questions regarding this notice may be directed to any representative of the SFHGLP or your State SFHGLP Coordinator
SFH Origination NewsFrom the National Office in Washington DC
For more information please contact John McClellan @ 512-279-1150 or John.McClellan@SupremeLending.com
Whew! that was stressful! My packet went to USDA RD on May 3 and we were told it would take 3-4 weeks before they would even be able to look at it. I was on pins and needles thinking there wasn’t going to be any funding left and that Congress would not get the bill passed in time. BIG sigh of relief at this news. Bravo!
i agree jamie / that’s great news!!! thanks for the heads up john!
Does anyone know when the usda mortgage funds are going to be ready to go? The clock is ticking and I can’t take the wait much longer…