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I received a call at 4:50pm from my Wells Fargo loan officer that we will be unable to close on our first home because the USDA has ran out of funds. She said that Wells received a letter from the USDA today stating that they would not be honoring the loans for at least a week or 2, but there were no guarantees. She stated that the letter asks Wells to back the loan until the funds have been replenished. She stated that Wells was unwilling to do so. I asked about my down payment and she stated that our money would be fine. Wells has offered us NOTHING. I specifally asked my loan officer what should I do, to which she replied, "I don't know."
It's Wednesday evening, I have packed my apartment, my fiance and my 3 children were all prepared to move on Saturday. We forwarded our mail today, changed over all of our address for electricity, phone, etc. Needless to say, we've told the apartment complex we were moving.So as of Saturday, we have nowhere to go and Wells could give a fck less!!!
I honestly don't know what to do or say. My fiance has emailed USDA higher-ups as well as Wells people. I've called the news and left messages. I think I'll email the better business bureau and anyone else that I think may listen.
Has anyone hear of the funding cut? Any tips or similar stories? Am I the only one going through this today?
The funds for USDA in many states run out around this time of year quite often. USDA is usually funded again in mid October. There is not much that can be done about it-they just run out of funds.
When I spoke to my USDA rep here in SC she told me this could happen since it has in the past.
I think it's pretty shabby that Wells Fargo is unwilling to 'back' the closing until USDA is again funded. The only reason I can think this would be is this: My USDA rep told me it is NOT 100% certain they will get funding each year they run out. She did however tell me that they have never, here in my county of SC at least, not received funding each year.
That is one of the issues with using USDA in the Fall. Your LO should have known this if they are familiar with USDA and cautioned you on it. It is not the banks or anyone's fault, but just a risk you take when using USDA or any local bond programs. They run out of funds some times. Eventually (in a couple weeks or so), Congress will authorize more funds.
Quotes from USDA offices this morning:
"we received some GRH authority yesterday that was 2009 carryover funds. Budget has not been signed yet. so we are good to go for now!!" - South Carolina
"We just received funding for the Guaranteed Rural Housing program." - Louisiana
October 8, 2009
Funding Available for FY 2010!
Fiscal Year 2009 carry-over funds and continuing resolution funds have been received for FY 2010. Loans packages will be processed in the order received.
Congress has not yet passed a budget for FY 2010, which began October 1, 2009. The program is temporarily funded with FY-2009 carry-over funds and funds received as a result of the continuing resolution until such time the FY 2010 budget is passed by Congress.
We will continue to keep you informed as additional information is received.
- From my USDA contact here in California