Any USDA lenders still funding?
i have 100% USDA RD purchase, 750 borrower, 100% ltv
Who is still funding these in WV
by tmieczkowski May 17, 2010 10:30 AM
Does you local USDA office have funds available?
Are you set up with Chase?
by TennesseeTuxedo May 17, 2010 10:33 AM
This is the latest.. looks like we are out of USDA
unLender Update 2010-22
Funding for the USDA Guaranteed Rural Housing Program – Retraction of
Modified Conditional Commitments by USDA Rural Development
Following recent legislative actions to address the funding shortfall in the USDA Section 502
Guaranteed Rural Housing Program, USDA Rural Development announced on May 11, 2010
that the Agency would continue to accept and process application packages. As had been
done similarly when program funds were not available, USDA Rural Development advised
loan approvals (Conditional Commitment: RD Form 1980-18) issued during this time would be
“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”.
On May 12, 2010 USDA Rural Development issued an announcement with the purpose
of recalling and voiding this earlier guidance that was released on May 11, 2010. This
second announcement dated May 12th also stated that additional guidance would be released
by USDA Rural Development within the next 24 to 48 hours.
As of today, no such guidance or revision has been issued by USDA Rural Development.
At this time, we are only able to confirm that all general funds have been exhausted in the
USDA Section 502 Guaranteed Rural Housing Program. However, funds designated for 2005
hurricane impacted counties and parishes, and some 2008 disaster-declared counties, are still
There has been no direction given by USDA Rural Development regarding loans in process
that were not obligated by USDA Rural Development prior to the exhaustion of funding, or
USDA Rural Development’s ability to accept new files.
We ask that you share this information with your loan origination and processing staff. As
always, Chase Rural Housing will continue to fund those loans that contain standard approvals
from USDA Rural Development (RD Form 1980-18). Please know that we share your concern
for this situation, and we will send an announcement once information is made available by
USDA Rural Development.
If you have questions or need additional information, please feel free to call yourtil the Senate acts:
by hortonb May 17, 2010 10:41 AM
I had one that got rejected on Friday for lack of funds. The local USDA office here are waiting for direction from the National Office. They have not received any instructions as what to do but wait.
by Rollout May 17, 2010 11:25 AM
does anyone have a timeline for new funding?
by tmieczkowski May 17, 2010 11:45 AM
There have been all kinds of posts about this topic. Search my name, I've been screaming to anyone that will listen.
USDA is DEAD until S 3266 passes, is reconciled with HR 5017, and then is signed by the President into law. Once that happens, the funding fee will increase to 3.5%, but the USDA program will then be self funding, and will be able to guarantee up to 30 Billion in loans per year.
If you have not already done so, find my prior post with links to your local senators contact info- and then take 5 minutes to let them know that S3266 needs to be passed, and passed quickly.
by XpressOH May 17, 2010 12:21 PM
SB 3266 was attached to the emergency spending bill (for the wars in Iraq/Afghanistan and also amendments for disasters in the south due to storms/flooding).
That was directly from the office of Sen. Bennet, SB 3266's sponsor.
The emergency funding bill MAY pass by Memorial Day.
by Roland99 May 17, 2010 12:25 PM
Spoke to Sen Bennet's office again just now and the bill may be up for a vote on its own. Nothing scheduled yet but it's up to the Senate leadership (I presume that to be Reid, Durbin, and Kyl) as to when it will come up for a vote.
Doesn't sound like it's attached to the emergency funding bill now.
IOW, no one really knows what the heck is going on.
by Roland99 May 17, 2010 12:57 PM
Interesting, that is NOT what I was told (that it was attached to an emergency spending bill). That would be a problem. Back in 2007, I believe, they did that, and funding was not approved until sometime in Feb for the fiscal year (that began back in October) budget. That didn't effect Guaranteed, because the program was not doing nearly the volume then that it is now, but it shut down Direct until early March.
I was told that the senate is looking to pass S3266 by "unanimous consent", which is a very fast process- it's just a matter of when it will be done. I was afraid someone would try to tie it to the financial reform bill, which would have been a nightmare.
by XpressOH May 17, 2010 1:27 PM
Then that would follow pretty much how it passed in the House (H.R. 5017) under suspension of rules.
The clerk in Sen. Bennet's office was probably misinformed or guessing on Fri. (when I called and was told it was attached to the emergency funding bill, sorry that I wasn't clear on that in my first post) since it was pretty fresh news at that point and it would explain the different answer I received today.
by Roland99 May 17, 2010 1:36 PM
Yeah, I would guess that maybe the clerk looked up the wrong bill or something, and gave you some VERY old news. Of course, I have almost no clue about the inner workings of congress, so I could be way off base there.
Lets just hope that they get off their collective asses and get this thing approved. It's a no-brainer, since the increased guarantee fee makes the program self funding. there really is NO reason anyone should block it, unless they are trying to do that to get leverage for some other, unrelated bill that they want something to happen on. That would be the ugly part of politics, and all we can do is hope those games don't become a factor.
by XpressOH May 17, 2010 1:43 PM
According to Senator Bennet's website, it is included in H.R. 4899 as of Friday.
by despintx May 17, 2010 1:45 PM
So...the Senate version of H.R. 5017 (which already passed the House resoundingly) is now back to the House attached to H.R. 4899 which stands a good chance of being passed...but when.
Sounds like it's time for calls to Reps. Clyburn and Cantor, eh?
The House is not meeting today and doesn't convene until 12:30 tomorrow. Guess Bennet thought this was the best chance to get it passed more quickly?
Thanks for the update, despintx.
by Roland99 May 17, 2010 1:55 PM
Click Here (the easiest way to find it is to search for 4899 on the page)
"Congressional Quarterly has reported that the timing of when the Senate might take up H.R. 4899 is uncertain, quoting Senate Appropriations Committee Chairman Daniel Inouye (D-HI) as saying after the markup, "[t]he only thing I can say is that we’ve been assured that this measure will be taken up for consideration and passed before the recess.”
by despintx May 17, 2010 2:19 PM
That's just lovely.
by XpressOH May 17, 2010 2:44 PM
When is the recess?
by BigHappy May 17, 2010 2:46 PM
The senate takes a recess for Memorial Day beginning May 31. Hopefully that is the date to which they're referring.
by picard May 17, 2010 3:06 PM
Guess we all go to Disneyland in the meantime?
Or pound the heck outta the offices of Sens. Reid, Durbin, and Kyl to get them to bring it up asap.
by Roland99 May 17, 2010 3:10 PM
Title: Disaster Relief and Summer Jobs Act of 2010
Sponsor: Rep Obey, David R. [WI-7] (introduced 3/21/2010) Cosponsors (None)
Related Bills: H.RES.1204
Latest Major Action: 5/14/2010 Placed on Senate Legislative Calendar under General Orders. Calendar No. 376.
Senate Reports: 111-188
So it's already out of the House...just the Senate needing to vote on it. I confused the matter earlier I believe.
by Roland99 May 17, 2010 4:49 PM
It looks like H.R. 4899 "may receive floor action this week."
by despintx May 19, 2010 8:05 AM
Nice find, despintx!
Wonder how long it's been listed there and is that just normal procedures for a bill that's put on the General Orders calendar?
by Roland99 May 19, 2010 9:14 PM
You'll have to take this with a grain of salt because I'm totally freaking out and could have been hallucinating, but...
My husband and I were watching CSPAN2 last night. When they concluded the day, the guy said that they would reconvene today at 9:30, blah, blah, blah, take another vote at 2:30 on Wall Street Reform (I assume another vote to limit debate) and then take up Senator Inouye's bill.
That has to be H.R. 4899! I backed up the DVR and listened to it again to make sure that was what he said. I hope it is true. Tune in just in case.
by despintx May 20, 2010 9:07 AM
I know they're trying for cloture on 3217 to go ahead and vote on that bad boy and send it off to the White House.
I know they're close and it depends on if a couple of Dem. senators are willing to let their amendments not make it - personally, I'd love to see Glass-Steagall re-enacted but that doesn't really help us on the USDA issue. :-)
They're back about 1:30 or 2:00 today after meeting w/the Mexican President and then taking up 3217 again...I'll be watching/listening intently but, wow, would be great for 4899 to come up today!!!
by Roland99 May 20, 2010 12:29 PM
It might be Inouye's amendment to the financial reform bill:
I just spoke w/someone at Inouye's office and he checked some other sources and there's no mention of 4899 coming up for a vote any time soon. He said it's usually listed on this one source if it's coming up for a vote soon.
He said it's in the hands of the Senate leadership (Reid, Majority Leader and Durbin, Majority Whip)
by Roland99 May 20, 2010 12:41 PM
I was afraid he meant amendment, but he specifically said bill. That was why I backed it up to listen again. Also, why would they schedule a vote and then an amendment immediately after the vote?
I know I may be totally grasping here, but I've still got hope.
by despintx May 20, 2010 2:47 PM
The vote to end debate on 3217 just passed! Sen Reid just said that he wants to finish it up and "move on to other issues" today.
Still have hope! If not today. Maybe tomorrow.
by despintx May 20, 2010 2:57 PM
Cloture reached on S. 3217 60-40.
That ends debate and, forgive my non-expert knowledge of how the Senate works, means a full vote for the bill would be next? Reid did mention a couple of germane amendments that would need to be voted on but I guess today/tomorrow will be the end of this bill and then on to 4899???
by Roland99 May 20, 2010 2:58 PM
Roland, do you think that all the USDA files that are caught up in limbo will have to go through underwriting again and get resubmitted or do you think USDA will be able to approve them as they are under the new terms?
Assuming this gets passed, of course.
by despintx May 20, 2010 3:07 PM
If the terms change to include a 3.5% fee instead of 2%, I'm pretty sure they'd have to go thru underwriting as the loan amount will be different, could be another $5,000 or more, eh? Would make mortgage payments go up and threaten a DTI if someone was already on the edge?
Probably a formality for most but my the LO at my builder's lender said it would have to do thru final one more time and that they'll probably have someone at corporate dedicated to handling the changes.
Of course, we can all dream that the USDA will issue, oh, a 30-day "grace period" wherein the old fee is still used? ;-)
by Roland99 May 20, 2010 3:14 PM
C-SPAN on-screen text stating "final vote by week's end".
Does that mean no other business will occur on the floor? I hope not!
by Roland99 May 20, 2010 3:15 PM
I don't think so. I think they'll iron out the other two amendments and then have final vote. I know Reid didn't say it, but I get the impression he's trying to wedge 4899 in there if at all possible.
by despintx May 20, 2010 3:18 PM
Going back through underwriting and USDA again would TOTALLY mess things up for me. Turn around in Texas is 3 weeks. That would put us closing after 6/30. NOT GOOD.
by despintx May 20, 2010 3:19 PM
Is the delay going to be that long given they've stopped processing all week and would be going thru their backlog?
by Roland99 May 20, 2010 3:25 PM
Are they going through their backlog? What would be the point if they'll all have to be resubmitted?
by despintx May 20, 2010 3:28 PM
I'm sure they have plenty that had had funds reserved plus I bet some are being pulled and borrowers looking to other forms of financing.
Best bet is just work closely with your lender and as soon as the legislation is passed and the USDA reopens the spigots, get yours thru final asap and resubmit to the USDA.
by Roland99 May 20, 2010 3:36 PM
Will do. Hopefully soon. Thanks.
by despintx May 20, 2010 3:39 PM
I am new to this forum and a 27 year old first time home buyer. I have been freaking out for a while now about this whole thing. Any insight would be greatly appreciated. We have a USDA home loan that is pending approval. My loan officer said that USDA (West Virginia) received the loan on May 12th 2010. Now she tells me that USDA is out of money. She told me that it could be a week or a month, she just doesn't know.
What I'm trying to figure out is if my loan was received by USDA on 5/12/2010 what are to odds of of receiving approval by 6/24/2010 if the bill passes? This is the date that my loan officer said that we would need to hear something by in order to close by 6/30/2010 so that we don't lose the tax credit. WV USDA takes only a few days in underwriting. If I understand correctly we need bill 4899 and HR 5017 to pass and fast right? This is the most stressful thing I've ever been through.
Does anyone know if there are plans to extend the june 30th closing deadline for the tax credit?
Please help me understand?
by dakjones May 20, 2010 3:56 PM
That's exactly what I'm trying to figure out Dak. I'm in the same situation. There are no answers at this point.
There is no talk of extending the 6/30 deadline.
by despintx May 20, 2010 4:03 PM
If 4899 passes, we are good to go. Cross your fingers.
by despintx May 20, 2010 4:05 PM
Interesting...Sen. Vitter is debating/lobbying that the Senate move to immediately take up the National Flood Insurance Program extension.
Ok, Bennet, get up there and hawk your wares (S. 3266)!!!!
by Roland99 May 20, 2010 6:08 PM
I've been watching cspan all afternoon. Is there any way to tell when there going to bill 4899?
by dakjones May 20, 2010 6:44 PM
I *hope* it's tomorrow but it may not be until next week.
The Senate calendar is set each day. You can check every morning here:
by Roland99 May 20, 2010 6:46 PM
The senate calendar shows that bill 4899 will not be considered until the 23rd. Is there a chace they will consider it sooner?
by dakjones May 21, 2010 8:11 AM
The 23rd is sunday. DO they meet on sunday?
by dakjones May 21, 2010 8:13 AM
My broker is now suggesting that we convert to FHA. I don't think there is much confidence that any of us can get approved before 6/30 at this point. There goes ALL our cash.
by despintx May 21, 2010 8:57 AM
My local USDA office tells me that if congress passes the appropriate bill or bills they can get the loan approved within a week. He wasn’t clear about weather or not the loan had to go through the underwriting process again which I’m sure is a determining factor. In my state (West Virginia) it only takes a day or two so I'm told.
I’m I being too optimistic here, 4899 passes on Monday the 24th, a week later (Monday the 31st) USDA approves the loan, closing is scheduled for the next week and we make it in time.
The part that confuses me is bills S.3266 and HR.5017? Do these need to pass as well? or have they been consolidated into bill 4899? Does anyone know? Also my LO is trying to convince me to go FHA but this may be because there’s something in it for them. Could this be true?
by dakjones May 21, 2010 9:15 AM
If 4899 passes, the other two bills are irrelevant. The bill will go back to the House for reconciliation because amendments were added since it was passed there. I don't know how long that will take.
It sounds like you may be able to pull if off, Dak. I'm not so confident because it takes at least 3 weeks to get approval in Texas.
I've basically been told that I need to choose between going with USDA or getting the tax credit. I may call the USDA office myself to see what they intend to do with my file. I don't want to let it go of the cash and convert to FHA, but I must close by 6/30, not only because I will lose the credit, but I have given notice on my apartment.
by despintx May 21, 2010 10:06 AM
Im in the same situation with my land lord. Why would these loans need to go through USDA underwriting a second time? Is that because of the changes with USDA loans that will occur due to the bill? Maybe they will do something to account for the timing issue with re-underwriting and the June 30th deadline for the tax credit. Man this is like a bad dream.
by dakjones May 21, 2010 10:34 AM
I hoped that they'd be able to conditionally approve all the apps caught in limbo with the new terms, but I've been told by numerous people that it will have to go back through underwriting because the new fees will change the deal.
I've got my people double checking what could happen, but right now I think that's the scenario.
by despintx May 21, 2010 12:00 PM
dakjones & despintx are you guys going USDA Direct or Guaranteed? I have at least dozen loans that have been approved through several different investors underwriting dept. I've been told from that they are holding those loans until USDA gets funding approval from National office and then they can be sent to USDA for their conditional committment, then we can order doc's and close them. I'm in Texas and the USDA offices I deal with usually have their committment to us within 48 hrs. I do have clients that are considering flipping to FHA, and I have told them about 3 weeks to do it, depends mainly on how long it will take for a new appraisal
by RandallTMS May 21, 2010 12:33 PM
Warning- Vent directed at no one member in particular to follow
While I understand that in year's past, Congress has pulled through with re-funding and that it was easier to get USDA to issue a Conditional Commitment of Fund, I can't help but be frustrated by the situation that our broker helped us to get in.
We knew USDA was running low, if not out of funds, at the end of April when we contracted. We are eligible to go FHA and USDA, but obviously the latter makes more sense because of the amount due at closing. FHA would have squeezed us a bit, but would have been doable. We were assured six ways from Sunday that our loan would be fine to go USDA. It's not as if we went blindly into this, I asked our broker if we should assume the worst and go for the FHA appraisal first. Or perhaps have a dual appraisal. We were told it wasn't possible to do that and that, again, we would be fine.
So, we paid $400 for a USDA appraisal and then another $400 for repairs noted before the appraiser would sign off. We were then told we'd have to fill out more paperwork because while the lender he'd chosen was no longer accepting USDA, Chase would accept conditional commitments. Again, we expressed doubt and were told we were fine, good to go. (We close on the 15th and our binding contract states we have a per day fee for each day we go over the agreed day.
Imagine our dismay to get that call and say, "Oops, you're on hold now, just sit tight." Just sit tight? Really? We are now looking at going in with FHA but that is another $500 for that appraisal and who knows how long that will take. Will we make the 15th deadline? Maybe, but it will be so close. We definitely will need a good chunk more to go to the table and we've already spent money for a USDA appraisal which is now, essentially, useless. Our market is not a stable one with many foreclosures and we're worried it might not appraise for the contract price. What then? Throw ourselves on the mercy of the seller- a bank? Pay the per day charge until USDA finally comes through, most likely losing the tax credit?
I understand that you want to get people into houses while keeping as much in their pockets as possible. I realize that USDA is the only way for many. However, a quick internet search shows that yes, the end of April was when it was predicted to run out of funds. People got lucky that it went 2 weeks longer. It also shows that USDA said back in March, "Hey we probably won't issue conditional commitments, because we don't know if the money will be there."
I know not all of you operated so dangerously, but I feel like we were being led blindly along the edge of a cliff by our mortgage broker, with him just hoping and praying that "it had to all work out". We had tremendous respect and gratitude for him and he's essentially tanked it all. I don't care that it was all supposed to work out one way, if you weren't certain, you shouldn't act so dangerously with other people's money. If we lose this house, we lose a minimum of $4000 between earnest, multiple appraisals, inspection and repairs. $4000 for a house that won't even be ours! If we wait, we lose the $8000 tax credit. It's not monopoly money, it's real money.
Yes, I've written my Senators. I've written Dodd. I'm hoping and praying that this works out in time to salvage this situation for the many, many people that have no clue if they're going to own a house or not. We at least have the luxury of attempting a go at FHA, I can't imagine how devastated those who don't have that are.
Again, I know that not everyone that is a broker was so reckless and blindly optimistic to this situation. I'm just saying that the ones who were leave a bad taste in many people's mouths in regards to the profession as a whole. I hope everyone that led their clients into a predicament like this takes a long hard look at how not to fall into this situation in the future. Our broker told us he had 8 other files on hold along with ours. 9 people in our area alone that are in limbo, because he thought getting these bills through the Senate were a cake walk. He isn't paying for additional appraisal fees. He isn't paying per diem fines if he goes over closing. He isn't losing $8000 if this blows past the deadline. If he had said, you might be able to squeak by with USDA but if not, THIS will happen, we would have pushed harder to just go FHA. It was our risk to take- not his.
by USDAFrustrated May 21, 2010 1:57 PM
Mine loan is USDA Guaranteed. What are you saying? Are you getting USDA approvals?
by dakjones May 21, 2010 2:11 PM
Sorry, that should $3000 in money we'll lose, not $4000. I added wrong. It's still a lot of money to lose if this all falls through for some reason!
by USDAFrustrated May 21, 2010 2:51 PM
Randall, I am talking about USDA guaranteed. I have been approved by my lender and my file is sitting at the USDA office. I was told that they are NOT processing the files. They are sitting in the order they are received waiting for further instructions. They don't know what the terms or their instructions will be if and when the bill is passed. Maybe everyone will be rejected and have to go back through underwriting and USDA approval again. Maybe they'll be able to process some of what is waiting under the old terms. They simply don't know. Nobody knows.
We can't take the chance that we won't be able to close before 6/30.
As far as how long it takes USDA to process in Texas, I believe that there are three different sections in Texas. If your section processes faster than 3 weeks, you are lucky.
And I can sympathize, Frustrated. I've made myself sick over this. Are you sure you need another appraisal? I thought the appraisals could convert.
by despintx May 21, 2010 3:36 PM
He told us that we can't, that we have to purchase a whole new appraisal. We are in NC, if that makes any difference?
by USDAFrustrated May 21, 2010 5:30 PM
Yes if you flip to FHA another appraisal will have to be ordered through HVCC, it's a new Federal law that went into effect at the first of the year for FHA. The appraisal is ordered through an appraisal management company, and it depends on who your lender is set up with. Basically, they want to prevent anyone from having contact with the appraiser as to not influence his opinion of value; realtors, LO's, processors, underwriter's no longer have any contact. I have already incountered a few problems with this, in regards to the underwriter's not accepting the appraisal. Now I have more delays.
I received a memo in March about USDA running out of money and immediately called all clients, we got theirs done under USDA. New applicants were told the situation so they could decide what to do. USDAFrustrated, I understand your situation, but I would suggest that you see what happens today on the Senate floor. They are supposed to deal with this starting today. I will be suggesting to all of my clients with loans in underwriting now to either flip to FHA or back out of the contract if nothing gets resolved in the next few days.
On Page 1 of the sales contract (see below), #4 Financing, #A third party finacning, #(2) Financing Approval, box (a) should be checked. You can get your earnest money back and terminate the contract because you are not approved by the lender. I understand you have repair dollars and appraisal dollars already out-of-pocket, and by terminating the contract you would lose the tax credit, but why can't you leave your USDA loan where it is and start over with another investor on the FHA program? I have many investors, so a few loans will start the FHA process with a different investor and keep the USDA where it's at hoping USDA gets their funding soon and then withdraw the FHA. The only other expense would be the appraisal, and my company is going to eat one of the appraisals. You will have to decide for yourself what's the best way for you.
4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check
applicable boxes below)
A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of
$ (excluding any loan funding fee or mortgage insurance premium).
(1) Property Approval: If the Property does not satisfy the lenders' underwriting
requirements for the loan(s), this contract will terminate and the earnest money will be
refunded to Buyer.
(2) Financing Approval: (Check one box only)
(a) This contract is subject to Buyer being approved for the financing described in
the attached Third Party Financing Condition Addendum.
(b) This contract is not subject to Buyer being approved for financing and does not
involve FHA or VA financing.
I really think the $8000 max tax credit is the important thing, A lot of people are buying homes because of that. If you qualified for USDA you can probably qualify FHA also, and I know time is running out 06/30/2010.
Despintx: If your file is at USDA waiting that's better than it sitting with the lender waiting to go to USDA. Nobody knows yet if they will have to go back to underwriting or not. The USDA fee may go from 2% to 3%, 3.25% or 3.5%, then the loan amount will go up and it will have to go back through underwriting. I hope they "grandfather" in loans that are approved and waiting for USDA, but I kinda doubt it. The investor's we use have said that they will designate underwriter's to push these files through quickly once the decision has been made. It could throw some folks over ratio, 2 things, pay the difference at closing or get a ratio waiver.
by RandallTMS May 24, 2010 11:28 AM
Does anyone know or have a valid opinion about what the timeline would be if bill 4899 were to be passed? How long would it take from the passing to the President signing it? Next how long would it be before individual state USDA offices can issue conditional commitments on loans that were in the pike at the time the funds were exhausted?
I realize that the loan may need to go through USDA underwriting again and that this could be the part that pushed everyone over the 6/30/10 deadline. Here in West Virginia USDA underwriting takes 24-48 hours. I hope that they come up with a solution for all the states that have a much longer underwriting process. For that matter a solution for all USDA loans that had agreements done before the 4/30/10 deadlines.
by dakjones May 24, 2010 2:05 PM
I'm still keeping my eye on things and have my fingers crossed for everyone. As for us, we converted to FHA on Friday and expect to close on 6/11. I just couldn't take it anymore.
Hang in there everybody. I know that our choice isn't an option for everyone. I wish you the very best.
by despintx May 24, 2010 5:06 PM
Randall- Thank you. It does help to know at least we won't lose the earnest money in a worst case scenario.
Late last week, we did opt to try for FHA, while keeping the USDA on the table. He didn't eat the appraisal fee, but at this point, I just want to push past this and actually own a home. It's been a long road for us, as for many, and it's just horrifying to be so close and to think you're in the home stretch, only to get the rug yanked out from underneath you.
I just hope that USDA comes in, but that if not, there are no major snags with FHA and that we can still close for the tax credit.
by USDAFrustrated May 25, 2010 8:48 AM
What is this? This article state that USDA will issue conditional commitments after the funds are exhuasted. This is dated May 11th. I guess its dead, does anyone know?
by dakjones May 25, 2010 10:52 AM
Dak, that memo was canceled less than 24 hours after it was published, much to our dismay.
by despintx May 25, 2010 11:21 AM
I posted a little to soon. I found out soon after I posted.
by dakjones May 25, 2010 11:33 AM
We're up for a cloture vote tomorrow. Not sure when, though.
IF we're lucky and we get the minimum 60 votes needed, then maybe we can get lucky again and they'll vote on the full bill right after that.
The financial reform bill (a more politically contentious bill) passed cloture and was voted on and passed on the same day last week.
by Roland99 May 26, 2010 4:34 PM
Just recevied an email memo from USDA. It says USDA will issue conditional committments "SUBJECT TO AVAILABLITY OF FUNDS" which means if your lender will accept the USDA approval then you can close your loan. It also says to contact your state coordinator to see what the funding fee will be. Evidently they have appropriated $2.5 billion. Talk with your lender to see if they will accept the USDA Conditional Committment "Subjest to Availablity of Funds" I have 3 investors that said they would and a few that will not until they take the "subject to" out.
Hope this helps
by RandallTMS May 27, 2010 9:04 AM