USDA Funding Update – Fiscal 2011Date: October 1, 2010
Questions or Comments Regarding This Information?
The U.S. Department of Agriculture Rural Development program will provide Conditional Commitment for the Single Family Housing Loan Program for purchase transactions in fiscal year 2011, which started October 1, 2010. The Guarantee Fee will be 3.50% of the loan amount.
What does Conditional Commitment mean? For lenders Conditional Commitment means:
- USDA will accept applications (just for purchase transactions at this time), underwrite, approve and issue a "Conditional Commitment."
- Lenders will continue to fund loans allowing for settlements to occur.
- Once funds become available USDA will fund the loans and lenders will receive a Loan Note Guarantee.
- Lenders stand the risk of default prior to the Loan Note Guarantee being issued.
If you are considering financing an upcoming home purchase using a USDA loan and want to learn more about your financing options through the USDA Rural Development Loan Program complete the contact form or call (866) 552-5912 to speak to your local Pennsylvania loan professional.
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