Rural Development Loans Issuing Conditional Commitment Until Funds Appropriated
Posted by Ben Roberts on October 23rd, 2009
The Federal Government is operating at the end of the fiscal year again as of September 30th, 2009. For the Single Family Housing Guaranteed Loan Program (SFHGLP), the government will issue a “Conditional Commitment” specifying it will NOT fund loans until congress has reallocated funds tot he USDA for this purpose…
USDA Rural Development
USDA Rural Development – the government – will continue to accept and process applications, and will issue Conditional Commitments “subject to receipt of Congressionally appropriated funds.” We expect congress will take up to 3 months allocating additional funds for Rural Development Loans. Banks may continue closing loans under the SFHGLP, however we expect the majority of banks will not fund these loans without the availability of government funds in today’s environment. Again, check with the loan officers to verify their banks will fund these loans despite the lack of government funds.
IF YOU CURRENTLY HAVE A REAL ESTATE TRANSACTION UTILIZING THE USDA RURAL DEVELOPMENT LOAN PROGRAM AND IT IS SET TO CLOSE WITHIN THE NEXT 2 MONTHS, IT MAY NOT FUND FOR UP TO 3 MONTHS.
Email from:
- Bill Evans, Express Mortgage, LLC
If you are having this trouble, Bill and his team will continue to fund these transactions until congress has appropriated funds for the RD program through the next fiscal year. If there are any other area lenders that will do the same please let us know in the comments below.
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Iberia Mortgage is still funding these.