rate or flag this pagehttp://hubpages.com/t/1987f5">Tweet thisUSDA Financing - Show Me the Money
70By fdoleac
USDA Funds Approved but not Released
For those of you that are potential home buyers, you may be aware of the 100% financing program available through the USDA. Through the Single Family Housing Guaranteed Loan Program (SFHGLP), lenders were authorized (May 2010) the issuance of Conditional Commitments so that loans could continue to be funded and closed until funds were used up.
President Obama signed the measure H.R. 4899 on July 29th making it law. On August 23, 2010 the USDA reported that Congress had authorized the program to continue at no cost to the taxpayer. Funding fees and a new electronic process were being revamped with the new approval allowing their programs to be issued without impact to the taxpayer.
Show Me the Money
Since that time, lenders have stopped accepting applications for the 502 Guaranteed Mortgage which is the USDA Rural Housing Guaranteed loan and one of their lending options.
Why?
It appears that the “decision makers” want to exhaust the funds available for the 502 Direct Loans before releasing funds for the “indirect” program. Those that operate government programs fear that if funds and programs appropriated by Congress are not utilized, then they will be reduced or eliminated. Evidently, the Direct Lending program is in that category.
This information is based on speculation by “industry insiders” who believe the politics of the situation is controlling the decision.
It is difficult to imagine that first time home buyers who must close by September 30, 2010 to qualify for the tax credit are being impacted on this level. Not to mention the struggling housing industry which is one major area of potential job creation.
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USDA, a primary provider of 100% financing for many first-time home buyers, has been stonewalled by politics.
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