I just received the following update from the USDA regarding their popular USDA Guaranteed Rural Home Loan Program.
"Fiscal Year 2010 Appropriated Funds -
Issuing Conditional Commitments once Appropriated Funds are Exhausted
The Single Family Housing Guaranteed Loan Program (SFHGLP) will issue Conditional Commitments once currently appropriated funds for FY 2010 are exhausted. Conditional Commitments will be issued "subject to the availability of funds and Congressional authority to charge a 3.5 percent guarantee fee for purchase loans and a 2.25 percent guarantee fee for refinance loans."
The good news is that this means that business moves forward as usual, HOWEVER, note that these Conditional Commitments will be subject to a 3.5% guarantee Fee for purchases and a 2.25% fee on refinances. This might cause some problems with loans that have been submitted with a 2% guarantee fee. Looks like I'm on the phone to get clarification.....
Larry Morris is a Certified Mortgage Planning Specialist in Portland, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans, Oregon VA Loans and conforming purchase and refinances in the states of Oregon, Washington and Idaho.
He can be reached at 503-421-0096.
