Has a lender told you that the USDA Is out of money?
Is your lender holding up closing because they say the “USDA is out of money”?
Around September of each year, we take calls from concerned buyers and their Realtors who say how their lender is holding up closing, because the “USDA is out of money.”
Today’s video will keep you in the know and explain all of the details, so you can keep your closings on track and without delay.
Remember, 2nd opinions are always important (especially around this time of year), so if you have financing questions and are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion which is great for both pre-qualifications and loans that are already in progress.
Each year Congress appropriates money as part of the USDA budget. The funds are appropriated for the Government’s fiscal year, which runs from October 1 until September 30 of the following year.
Further, at the beginning of each fiscal year which starts October 1st, funding for the USDA Loan program is not available for a short period of time.
During this temporary lapse of funding, USDA Rural Development will continue to issue Conditional Commitments that are “subject to the availability of commitment authority” for both purchase and refinance transactions.
So what does this mean to you as a buyer or Realtor?
Make sure to ask your lender or loan officer what their company’s policies and procedures are during this time of year so you will be in the know.
If your transaction is experiencing delays or running into problems because a lender, broker, or credit union state that the USDA is out of money and they have to stop, remember this all has to do with how that particular lender is set up to process USDA loans at this time of the year.
As in previous years we are here to help, because at Metroplex Mortgage Services it is business as usual and we continue to process, close, and fund USDA loans during this time of year without delay. So if you are in need of a reliable USDA lender, please let us know so we can assist.