Hometown Lending

USDA Loan Program Running Out of Money

Looks like the USDA may run out of funds a little earlier than anticipated this year.  The USDA Rural Single Family Housing Guaranteed Loan Program is an excellent loan program that historically, has performed very well.  Several lenders have already begun to drop this program from their offerings.  In past years, the fund has also run out of money, but much later in the year.  Given the current state of the economy, it is uncertain if and when additional funds will become available.  Below is an excerpt from the USDA:

“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.

Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita.  Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited.

We apologize for any inconvenience this may cause you.”