photo credit: visualpanicPhoenix Mortgage News: USDA Home Loan Funds will Continue
First the Good News! I just got word that the USDA Home Loan Program will continue.
The not-so-good news however is that the currently available USDA funds are running very low and perhaps there is one or two more days left for the old allocation.
Once these SFHGLP (502 Guaranteed) funds are exhausted, USDA will be able to issue conditional commitments “subject to the availability of funds and Congressional Authority” to charge a 3.5% guarantee fee for purchase loans and a 2.25% guarantee fee for refinance loans.
This means that any loan that did not get funds allocated on time will be subject to the new USDA Loan Guarantee Fee.
More information to come soon!
Update 5/14/2010
USDA has rescinded their announcement from May 11th, 2010.
USDA is officially out of funds at this time and are not funding any new loans.
The saga continuous…
Christoph is a licensed mortgage loan originator in the Greater Phoenix Metropolitan area.
Chris, this is good news for Arizona buyers!