USDA Home Loans Blog

May 24th, 2010 11:36 AM

USDA Home Loans funding update

As you all have heard for months now that USDA was out of money. This is not been the case for USDA Home Loans and Neighborhood Funding. We have been funding these purchases up to May 17. We were offering conditional loan commitments and funding all USDA transactions until we received a email from USDA recending a previous email that gave us the ability to issue conditional loan commitments and fund all of our USDA mortgage transactions. This has not stopped but placed a temporary lapse in funding.

The Senate is slated to begin debate on an emergency appropriations bill Monday afternoon that includes a provision to get the Rural Housing Service program up and running again. The measure would allow the RHS to increase its current 2% upfront premium to 3.5% and make the single-family program self-funding. It would free RHS from the appropriations process and from seeking annual renewal of its loan commitment authority. RHS ran out of loan commitment authority on May 17. The emergency appropriations bill (H.R. 4899) includes funding for the wars in Iraq and Afghanistan and natural disasters stateside.

Congress wants to pass this bill before the Memorial Day recess. It represents the fastest legislative vehicle to fix the RHS program. The House has already passed a RHS reform bill, sponsored by Rep. Paul Kanjorski, D-Pa., that increases the upfront premium to 4%, which means House appropriators likely will not object to the inclusion of the RHS provision in H.R. 4899.

For more information contact Steve Jeppesen @ 352-817-3080

Posted by USDA Loan Specialist on May 24th, 2010 11:36 AMPost a Comment (0)