USDA isn't running out of funds as quickly as they thought

[Anonymous]

When I said last, I meant for my county. There may still be funding in other states and areas, especially those considered disaster areas.

[conjur]

I know that some states/counties have been transferring funds to other areas that were running out but perhaps that shifting has finally come to an end?

I just wish I knew if I was submitted to final underwriting yet. I've a feeling I won't be submitted to USDA for another 7-10 days.

Enjoy your new home!

[Anonymous]

WHEW! Found out last night at 3:45 from LO that we got USDA approval. Man, talk about stress.

Closing tomorrow !!!!

[Anonymous]

Thanks, and good luck to you. The wait is the most stressful part, but it will work out. I wasn't so much worried about getting a commitment as I was about the time frame. Fortunately, my LO and Agent have been real pros thus far.

[conjur]

Just called Sen. Bennet's office.  S.B. 3266 has cleared the Housing and Banking Committee!!

It's been attached to an emergency appropriations bill.  I asked when that would come up for a vote and the gentleman on the phone said he didn't know, that it was up to the Senate leadership to take up a vote on that and they're still dealing w/finance reform (but some other bills have been coming up for votes and have been passed so.....)

I believe this is the appropriations bill (it's cleared committee...very good sign)
http://senatus.wordpress.com/2010/05/14/appropriations-committee-approves-2010-emergency-supplementa...

[Anonymous]

Please provide any new updates anyone may have.  We were informed this week that the USDA guarantee funding had been depleted and our closing is now on hold.  This comes after waiting since August 2009 for an acceptance on our offer for a short sale held through Bank of America.  We received the long awaited approval the first week in May only to be told by our LO that we had been working with from the beginning that the funds were not available.  The real challenge is that B of A stipulated that we had to close by June 15, or the acceptance would be void, and we would have to go throught the 10 month process all over again.  It seems hopeless at this point, does anyone have a glimmer of hope to offer?

[Anonymous]

I called my local USDA office twice, and they were very friendly. I suggest that you try and call them to ask if they hav your file. They may not be able to tell you, but it can't hurt. The guy I spoke to was more than happy to look and see if funding was still available.

[conjur]

May 14, 2010
The remaining Guaranteed Rural Housing funding was exhausted May 13th.
On May 12th, USDA issued a notice of the ability to issue conditional
commitments subject to Congressional authority and then rescinded that
notice. At this time, we are waiting for further guidance from the USDA
office in Washington, D.C.
What this means for you:
• For loan credit packages that were sent to RD but have not yet
received a conditional commitment, determinations will be issued
by RD today, and we will communicate the results to you as they are
received.
• Once funding resumes, the RD fee is expected to be 3.5% of the
entire loan amount for purchases and 2.25% of the entire loan
amount for refinances.
• Pending loan requests that do not have a conditional commitment
are required to wait until further guidance is provided by RD.
This means that we will be unable to fund any loans that do not
have an unexpired commitment from RD until further notice.
RD offices are not accepting new submissions until they receive
authorization from their national office.

I spoke again with Sen Bennet's office again just now and the bill may be up for a vote on its own. Nothing scheduled yet but it's up to the Senate leadership (I presume that to be Reid, Durbin, and Kyl) as to when it will come up for a vote.

Doesn't sound like it's attached to the emergency funding bill now.

IOW, no one really knows what the heck is going on.

My loan package was sent out via FedEx on Friday so I'm sure mine's in the last status mentioned above.

ugh.

[Anonymous]

I am new to this forum and a 27 year old first time home buyer. I have been freaking out for a while now about this whole thing. Any insight would be greatly appreciated. We have a USDA home loan that is pending approval. My loan officer said that USDA (West Virginia) received the loan on May 12th 2010. Now she tells me that USDA is out of money. She told me that it could be a week or a month, she just doesn't know. Some how I don't think she is aware of the fact that congress has passed a bill to revive the program for the rest of the year. This is true right?

What I'm trying to figure out is if my loan was received by USDA on 5/12/2010 what are to odds of of receiving approval by 6/24/2010? This is the date that my loan officer said that we would need to hear something by in order to close by 6/30/2010 so that we don't lose the tax credit. This is the most stressful thing I've ever been through.

Please help me?  

[conjur]

The funding for the USDA program has been attached to the Senate version of H.R. 4899 (Disaster Relief and Summer Jobs Act of 2010).  It also includes supplemental funding for the wars in Iraq and Afghanistan.  It's cleared the Senate committee and is on the schedule under General Orders but until S. 3217 (the financial reform bill) is passed, hopefully today, then we're stuck waiting.

I believe May 13 was the day that the USDA actually did run out of funds.  My loan app was FedEx'd out on Friday the 14th. It's *possible* yours got thru in time but your lender should be able to call the USDA and inquire as to the status of your loan to find out for sure.

The latest I've been able to find on the legislation is this:

http://voices.washingtonpost.com/ezra-klein/2010/05/reid_loses_cloture_vote_on_fin.html

"Next week, the Senate is scheduled to take up the next war supplemental, which will have funding both for Iraq and Afghanistan and also for various disaster-relief efforts, and it will take up a bill to extend economic supports for the jobless. If the Senate doesn't finish financial regulation this week, it probably can't do those bills next week because the GOP's routine filibusters mean that each vote will require days of floor time. And the plan, as of now, is for the Senate to adjourn come Memorial Day. Of course, the Senate could just choose to work past memorial Day, which would solve the problem of floor time."

Also, if your loan did not make it in time, you will likely have to be resubmitted with the new, higher guarantee fee of 3.5% versus the old 2%. That means a likely trip back thru final underwriting and then resubmitting to the USDA.  That's the boat I'm in.