Every year the United States Department of Agriculture (USDA) ?guarantees thousands of home loans to borrowers who have?an income of up to 115% of the median income for the area. Funding for the program is always uncertain and there is generally a period during which funding for the program is not available and that time usually is late in the year.
This year the dry up came a little early with an announcement sent on March 9 to participating lenders. “This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010″, the letter reads.
Because there is no certainty when the funds will be made available the department is not issuing any statements regarding a time period.
— Ken Cook NMLS ID 208452
Is additional funding for the program being worked on in Congress?
Thanks.
Tom there are thousands of folks searching for that answer and trying to make something happen. There are members of Congress who have constituencies heavily dependent on rural development so while I do not have names I am certain those ladies and gentlemen are not so busy with other things as to push for this needed funding.
Based on your experience, do you think there is any way on God’s green earth that we will be able to acquire a USDA loan early May?
I ask b/c I am in the process of building a house, that was set to close on 04/28/10. I just found out yesterday that my lender broke the law, as well as committed fraud. Therefore, I spent 4.5 hours in a new lender’s office yesterday figuring out how to “fix” what the other lender did.
This now means I cannot not close until sometime in the first 2 weeks of May. They are going to try for the USDA loan, but I am just curious what the actual odds are of this going through at that time? I just don’t trust people’s word on the lender end much these days, ya know???
Thank you for your time,
Patricia Foursha
Patricia my best advice is to call USDA in your local area. http://www.usda.gov – ask them their thoughts. I hope this helps and you get it in time enough to get your best answer.