USDA Finances 100% of your home purchase
Each year after the USDA Rural Development fiscal year ends, USDA must have authorization for funds in order to fully guarantee the loans. Since October 1, 2015, we have been on hold for funding USDA loans until today.
USDA just announced a few hours ago that Fiscal Year 2016 funding for Rural Development’s Single Family Housing Guaranteed Loan Program is now available! The funding is authorized by the Continuing Appropriations Act, 2016 (P.L.114-53, H.R. 719).
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Below is the official announcement from USDA Rural Development today to fund USDA loans with conditional commitments:
October 20, 2015
Fiscal Year 2016 Funds Now Available
Fiscal Year (FY) 2016 funding for Rural Development’s Single Family Housing Guaranteed Loan Program is now available. The funding is authorized by the Continuing Appropriations Act, 2016 (P.L. 114-53, H.R. 719).
Requests that received Form RD 3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee” (aka Conditional Commitment), contingent upon the availability of an appropriation, will be obligated in the Agency’s financial system over the next 2-3 business days. An updated Conditional Commitment will be electronically generated by the Agency to remove the “contingent upon” language. Lender receipt of the updated Conditional Commitment will signal the request has been successfully obligated by the Agency. NOTE: Closing transactions are not eligible for submission to USDA until a loan is successfully obligated.
Once the loan has closed (including loans that were closed prior to the obligation of funds by the Agency) the lender may submit their request for Loan Note Guarantee along with a closing package. For manually submitted packages, ensure the lender certification on the Conditional Commitment is signed and dated after the Agency’s obligation date (the issuance date on the updated Conditional Commitment). Lenders using the Agency’s automated Lender Loan Closing (LLC) System will complete the lender certification electronically (i.e. no manual signature/date required).
Questions regarding this notice may be directed to the Single Family Housing Guaranteed Loan Division, at 202-720-1452.