We have been advised by USDA officials that effective 10/1/2011, USDA will not issue final approvals for loans to close. They have funds to last through the end of the month so any loans that received “conditional commitments” from a local USDA by 9/30/2011 should be fine.
They will stop issuing the “conditional commitments” on 10/1/2011 because even though they are “self-funded” now they still must wait on Congress to approve their budget. This could delay some loans by 2-3 weeks!
If you are trying to buy a home right now using the USDA Rural Housing loan, write or email your Congressman and tell them to HURRY UP! The faster Congress gets the new budget approved the faster USDA loans can start closing again in NC and SC! We need this program as it is one of the only ways for people to finance a home with no money down!
The good news is that the delays will not last forever and we can still process and approve USDA loans in the meantime! The files can be 100% done on the lender’s end, but will sit at the local USDA office until the new budget is approved. If you are just starting to look right now the delay might not even affect you at all!
If you would like to buy a home and are interested in the USDA program, give me a call at 980-721-7478 today! I would be happy to answer any questions you might have about the program!