Hello everyone- I am looking for someone, anyone to help me understand this whole USDA process, and keep some sanity. 
From the begining... I filed out a pre-qualification worksheet and sent it to my local USDA office. Two days later, I got a letter that the needed more information from me/clarification of some thing. I made an appointment and met with the area specialist, we talked about the questionable things which were (my debt.. car note that is about to be paid off) and a money gift that I get each month ($400) we got that all taken care of, and I sent the documents needed to confirm these things, and I got a letter in the mail (9/22/10) that said I was found to be pre-eligible for a "very low" income housing loan, with a note that says " the pre-eligibility is subject to availability of funds." The letter also said that the following items must be submitted to the office in order to determine your final eligibility. I sent the check for the credit report, and a copy of my DL and SSCard, and all was good to go. Well I called the local office on Monday to see where I was standing, they said that they had gotten my credit check back, and it would be evaluated and the final decision, (certificate of eligibilty) should come to me within a week. Well today (10/5/2010) I got a letter in the mail from USDA saying that although I was found to be eligible for the program, they would not be making final decisions due to the lack of available funds, and it could be anywhere from 3months-6months before my loan request can be resumed, and that when they are in a position to process the rest of my application, they would call or send a letter...
What in the world is going on? I went from being all set, to being held back 6 months??? Someone please help me to understand.
This is all pertaining to a Section 502 USDA Rural Dev. Direct Loan and going through the Bloomington, Indiana Office, building a home in Monrovia, Indiana. Thanks!