GOOD NEWS! The US House Finance Committee approved a measure to fund the U.S. Department of Agriculture (USDA) Rural Housing Service Loan Guarantee Program (section 502 Loans).
Say What? Have you been reading that USDA is out of money? Well, it’s not COMPLETELY out -but it’s close. In our part of North Carolina it’s taking about 12 days to get your loan underwritten by USDA…. they sent out a message this week that they thought they would be out of cash by May 7th. This means that if your loan is not ALREADY submitted to USDA, then you would be SOL (So out of Luck).
So the fact that this program will likely get more money is GREAT NEWS! What will be even better, is if Congress can pass this bill by the end of next week – assuming it looks like it will pass, then USDA could continue issuing “Conditional Commitments.”
If, If, IF they continue issuing “Conditional Commitments” after next week – we will be able to continuing funding – even if Congress takes another 2 or 3 weeks to get it all passed.
The HIC-UP comes when there’s uncertainty about weather Congress would change the program. The version passed by the House Finance Committee does NOT change the current program. To view the Bill, click here – H.R. 5017, “Rural Housing Preservation and Stabilization Act of 2010,” – Rep. Paul Kanjorksi (D-PA)
We will keep monitoring this. If you have questions about USDA Home Loan financing, and you are purchasing in NC – please call Steve and Eleanor Thorne, 919-649-5058 Connect With Us on Facebook,
Thank you for always providing such relevant info! I was wondering where funding for USDA was just as your post popped up.. very timely! Thanks Eleanor
My wife and I have been approved by our mortage company, but they say they can not do anything further until USDA’s funds are replenished, we have to close by June 30th to qualify for the homeowners tax credit, we are getting extremely nervous because that time is rapidly approaching. Do you know of anybody we may contact to check for any updates on available USDA funds and the status of our USDA application? Our mortgage company is no help!
Chris – we have money available through some of our Investors… others, like Wells Fargo and Bank of America will not do these loans because of a difference in the House and Senate Bills. There is a Congessman, Sen. Isakson from Georgia, who is proposing an extension to the Tax Credit.