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#331616 - 03/18/10 03:02 PM USDA Financing Drying Up?
Banks Member Registered: 04/24/06 Posts: 26 Loc: Charlotte, NC	Has anyone else heard about any problems with USDA financing recently? I'm told that the money is running out? I have had a couple Sellers not want to deal with offers recently because they were USDA financing and they were afraid it was too big a risk. Have not seen anything on Google, so looking for any feedback available. I'm feeling really uninformed here...
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#331619 - 03/18/10 03:09 PM Re: USDA Financing Drying Up? [Re: Banks]
Greg Phillips Mortgage Professional Veteran Member Registered: 01/26/05 Posts: 1372 Loc: Lancaster, Ohio	I will just cut and paste from my blog. My article should hit Google soon. Quote: On Thursday 3/11/2010 I received a memo from USDA notifying me that their funding for the program would likely be exhausted by the end of April. Every year this happens and USDA issues conditional commitments. These conditional commitments are to purchase the funded loans as soon as they receive more funding. However, this year they are not doing that. They do not know if and when they will receive more funding. With that being said the following day memos were issued by the majority of lenders and investors stating the program was going to be suspended and established guidelines for the last date they would accept a USDA loan. Most were effective immediately. The only 100% program available right now is VA. I have been quick to call the counties where I have buyers shopping for homes. They may have grant money to assist with a down payment on an alternative option like FHA. Right before the tax credit deadline and prime buying season! _________________________ "Closing Mortgages Since 1999" Web: Mortgage Loans Message Board Blog
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#331634 - 03/18/10 04:23 PM Re: USDA Financing Drying Up? [Re: Greg Phillips]
Banks Member Registered: 04/24/06 Posts: 26 Loc: Charlotte, NC	Thanks Greg! That explains it. I just had 5 offers under a highest and best call all summarily rejected because every one of them were USDA. The timing could not have been better. ;-)
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#333774 - 04/03/10 09:11 AM Re: USDA Financing Drying Up? [Re: Banks]
Oli Member Registered: 11/01/07 Posts: 297 Loc: North Carolina	I just closed a USDA on Thursday. When my client first started looking she wanted to buy new construction and close before June 30 to get the first time buyers credit. Well since as of March 15 the builder had yet to start construction I talked my client into a resale that was nearby. We were only trying to beat the tax credit deadline but it turned out that it was the best move she made as she did not have the money for any kind of downpayment. I could only imagine what kind of mess it would have been to miss the deadline and also not have the USDA funds available. Bullet dodging 101! I think there is still time for those that have submitted their packages to USDA but keep in mind that it is taking a while for USDA to go through the packages and get them approved.Ours took about 7 days. _________________________ There are no shortcuts to any place worth going. (Beverley Sills)
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