USDA Funding Update - New Bill Introduced April 13th

By
Mortgage and Lending with Prospect Mortgage NMLS #151088

On Tuesday, April 13, 2010, USDA sent out an announcement that funds were being exhausted at the rate of around $100 million per day.  They also urged everyone to contact their Congressman to impress upon them the importance of continued USDA funding availability. 

This comes shortly after Congress recessed for spring break without resolving this critical issue.  Earlier today, it was announced that yesterday, Rep. Shelley Moore Capito, R-W.VA, introduced new legislation regarding the continued funding for USDA loans.

Capito Introduces Bill to Continue Access to Home Ownership in Rural Communities

Legislation Would Increase USDA Rural Housing Loan Guarantee Program's Capital Reserve

Washington-Rep. Shelley Moore Capito, R-W.Va., the Ranking Republican Member of the House Financial Services Subcommittee on Housing and Community Opportunity, yesterday introduced legislation in the House Financial Services Committee to shore up funds for the U.S. Department of Agriculture 502 Rural Housing loan guarantee program.  Capito's bill, H.R. 5003, The Rural Housing Improvement Act, would ensure that responsible families in rural communities continue to have access to the credit market to finance their homes. 

"I have received hundreds of letters, emails and calls from my constituents, including home buyers and sellers, who are concerned that the 502 loan guarantee program will soon run out of funds," said Capito.  "My legislation would continue to assist thousands of responsible, low to moderate income West Virginians who otherwise wouldn't have access to home ownership."

It is still very important that everyone contact their representatives regarding USDA funds. 

Unites States Congress members

United States Senate members

 

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

Georgia Dream Down Payment Assistance Program Overview/Updates

HomePath Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

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Rodney Mason is a Sr Loan Officer located in Atlanta, GA.  He is also 203K Renovation Loan and HomePath REO Property Specialist.  He can be reached at (404) 591-2453.

Providing financing for cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.


Providing financing for cities across Alabama including: Alabama Port,
Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

 

               

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Tags:
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Rainmaker
91,811
Gerry Suarez Jr.
Mortgage Financial Group, Inc. - Mount Dora, FL
Expert Home Loan Advisor

Rodney, great job getting the word out. Unfortunately it seems the name of the bill is now "To increase the loan guarantee fee for rural housing loans guaranteed under section 502(h) of the Housing Act of 1949" which hints at the changes to come; but none of us were really expecting new funds to come without some program changes.

Please continue to keep an eye out and inform our industry. Without our collective support for this, it may not happen.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Apr 14, 2010 06:21 PM #1
Rainmaker
347,864
Rodney Mason
Prospect Mortgage - Atlanta, GA
FHA 203K, USDA, VA, HomePath Renovation Specialist

Gerry....Increasing the upfront fees seems to be the way to go these days, ala FHA.  Still, with no MI, USDA remains a great loan program.  Next to VA, its essentially the only true 100% mortgage program remaining.

Apr 15, 2010 07:49 AM #2
Anonymous
Ashleigh

So does this mean that loans submitted to USDA will not get denied even if funds are exhausted?

Apr 15, 2010 10:29 AM #3
Rainmaker
347,864
Rodney Mason
Prospect Mortgage - Atlanta, GA
FHA 203K, USDA, VA, HomePath Renovation Specialist

Ashleigh.....Once USDA funding is exhausted, they will cease issuing conditional commitments.  As of right now, when funds are gone, they are gone until the beginning of the next fiscal year.

Apr 15, 2010 11:00 AM #4
Anonymous
Karen

I have a USDA loan in Georgia that just failed Section 32 because of the new fee, anyone come across this? 

Aug 03, 2010 12:38 PM #5
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Rainmaker
347,864

Rodney Mason

FHA 203K, USDA, VA, HomePath Renovation Specialist
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