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DOUG CAPPS

USDA Funding - Possible Delays after 10-1-2011

Friday, September 30, 2011 - Article by: DOUG CAPPS - Fairway Independent Mortgage Corp. - Message

USDA UPDATES

USDA has advise in an unofficial memo, that effective 10/1/2011, USDA will not issue "subject to conditional commitments" as they normally do every year. They have funds that will last through the end of the month, so all loans with conditional commitments by 9/30/2011 will be ok, and can fund AFTER 9/30/2011.

On October 1st, however, they will stop issuing commitments until congress approves their budget (even though it's a self-funded program congress needs to approve) and funds are loaded into their system. USDA anticipates this could delay loans 2 weeks from getting clear commitments. So what does this mean?

  1. Loans closing within the first two weeks of October may not happen since clear commitments will not be issued (Estimation from USDA- again non official).
  2. We can still underwrite, approve files, AND can still send the files to the Local RD offices, but they will sit and wait until the funds have been uploaded into their system and a clear commitment can be provided
  3. Remember, WE ARE ALL In the SAME BOAT. NO lender will be able to close ANY USDA loans without a clear commitment.

For more information please contact DOUG CAPPS at (662) 429-5100 ext. 105. NMLS ID #68160.

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632 is a "MS and TN Licensed Mortgage Company." NMLS ID #2289. An Equal Housing Lender. All loans are subject to credit approval and compliance with investor guidelines.

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