USDA Rural Housing is running out of money!

March 15, 2010 - PRLog -- The USDA issued this statement regarding funds for their residential mortgage program...
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"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."
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What this means is that a homebuyer who is going through the process of getting a Rural Housing loan could show up to their closing and receive the news that the lender will not go through with the transaction because the Rural Housing department has exhausted their "guarantee" money. You might be out of luck if you are planning to close with a USDA loan after April of 2010.                        
                                                           
If you are in the process of getting a Rural Housing loan to purchase a home and you are scheduled to close towards the end of April, you will want to check with your lenders policy and find out if they plan to continue to fund loans after the money runs out.
In the past some lenders would fund the loan then Rural Housing would "guarantee" the loan when funding was available, but not all lenders are able to fund without a “guarantee”.
RDA Rural Housing is an excellent loan. It boasts 100% financing with no monthly mortgage insurance.                                                    
                                                             
Everyone is in hopes that the department will get more funding soon, but if not than FHA could become an even bigger player in the real estate market.
                                                                                               
If you want to learn more about Rural Housing Loans and find a lender who can fund without a “Guarantee”  You can find out more at http://www.myfhamortgageblog.com/can-i-qualify-for-a-no-m...

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Mike Harrison's career began in 1994 when he found he had a passion for helping people to achieve home ownership and financial freedom. Overtime, Mike has accumulated an extensive knowledge in all aspects of financing. Mike is well known in the Utah community for his service and plans to continue to help Utah grow for many more years. -- First Federal Mtg, Inc