photo credit: Allie_CaulfieldUSDA is out of Funds – No conditional commitments!
Times are turbulent in the mortgage business and the latest news about whether or not the USDA has funds left, and also if the USDA will be able to continue to fund (subject to conditional commitments) is just another example that things are constantly changing.
Just a couple of days ago we got news that USDA will continue to fund loans but as of today I have confirmation that USDA is officially out of money.
At this time the USDA is out of money and will not be issuing funds subject to conditional commitments.
Subsequently there is not a really a viable 100% financing solution out there unless you qualify for a VA loan or you manage to find a $100 down Hud Home without getting outbid.
The USDA home loan has been such a great program for the Phoenix Metro area since not-so-rural areas like the City of Maricopa, Casa Grande and parts of Queen Creek, Arizona are designated by the Rural Housing Service (RHS) and qualify for USDA loans.
Needless to say that in these areas property inventories remain extremely high and having no access to USDA funds surely won’t help the sales activity.
Until Congress passes legislation (and there are currently three pieces of legislation int he works) the only thing we really can do is to address and share the urgency of this concern with our congressmen and senators.
Christoph is a licensed mortgage loan originator in the Greater Phoenix Metropolitan area.
I was talking with my loan officer over at Des Peres Mortgage about the impact of the Federal governments overreaching tax policy on states and their municipalities and we both agree the current system is unsustainable. If the Fed would stop robbing the states blind they might actually be in a better position to deal with the current market.