USDA Running Out of Money for Rural Development Home Loans
USDA Rural Development (RD) announced yesterday (March 10, 2010) that funds for the Single Family Housing Guaranteed Loan Program (USDA home loans) will likely be exhausted by the end of April, 2010. Once funding is exhausted, USDA will not issue Conditional Commitments "subject to receipt of appropriated funds." This is because it is not certain when funding for the USDA home loan program will be available again.
Funds cannot be reserved for mortgage applications until a complete file has been submitted to RD. And, there's no guarantee how long existing funds will be available or when more funds will be appropriated.
What can you do? Contact your Congressmen and Senators and explain to them why the USDA Section 502 Guaranteed Loan Program needs funding. Many of them do not realize that the USDA home loan program is running out of money. This program is important to many homebuyers as other than VA mortgages, it's the only 100% loan program available to them. Spring is around the corner, the housing market had not yet recovered, and this product will be important to many home buyers during this home buying season.
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