USDA Rural Housing – Out Of Money.

Your mortgage branch could be done with USDA Rural Housing for the year! According to the estimates by the USDA Rural Development Agency the Single Family Program  will be out of fund by the end of April for 2010.

In a memo dated April 9,2010 that was sent to all participating lenders the agency said:

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.

Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because it is not certain when additional funding will be available.

Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita.  Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.

We apologize for any inconvenience this may cause you.  Should you have any questions, you may contact the Single Family Housing Guaranteed Loan Division at (202)720-1452.

The agency ran out of funds in March last year (the funding year for Government programs ends in September) but the gap in funding was filled by the stimulus program.

Many end investors are already cutting off new applications. If you are a loan officer you need to check with your company’s secondary department or the investor that you have a broker relationship with to see if they are going to continue to accept applications.

It could be the end of the USDA Rural housing program for the rest of the year.

Net Branch – USDA Rural Housing

I always welcome comments, questions, and subscribers!

If you would  like to know more about our net branch partner program visit our Frequently Asked Questions page.

Leave a Reply