IMPORTANT NOTICE : We are still closing and funding the USDA RURAL HOUSING GUARANTEED LOAN PROGRAM

NOTICE : We are still closing and funding the USDA RURAL HOUSING GUARANTEED LOAN PROGRAM
Last month the United States Department of Agriculture Rural Development Administration issued a Single Family Housing Guaranteed Loan Program Fiscal Year 2012 Commitment Notice.

Funding for the Single Family Housing Guaranteed Loan Program will not be available for a short period of time at the beginning of Fiscal Year 2012, which started October 1, 2011. During this temporary lapse of funding, Rural Development has been issuing Conditional Commitments "subject to the availability of commitment authority" for purchase and refinance transactions.

Some lenders are currently not closing loans with a conditional commitment issued by Rural Development if the commitment is subject to the availability of commitment authority.

AFR will close and fund a USDA loan once the loan is cleared to close if the conditional commitment is subject to the availability of commitment authority subject to all other closing requirements.

As a reminder, the announcement also included the FY 2012 fee structure which will be as follows for all loans that receive a conditional commitment from Rural Development on or after October 1, 2011:

2 percent up-front fee for purchase transactions;

1 percent up-front fee for refinance transactions; and

0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.

Form RD 1980-21, “Request for Single Family Housing Loan Guarantee,” has been revised with an effective date of 10-2011 and is currently available on our website.

Please contact me if you have any questions in regard to this notice.