Good news! USDA HR 502 passed the House of Congress and is now on its way to the Senate for passage. This bill re-capitalized the USDA fund with $30 Billion of funding. Once it passes the Senate, it is then on to the President’s desk for signature.
USDA loans are property specific and even if you live in a city, that property may qualify. It’s a great program for our rural properties or properties that have been tagged as rural.
I’ll be sure to keep you updated on this bill as it moves to the next stage.
Twitter Updates
19 May 2010 at 10:41 am
What upsets me is that my loan was approved and the GUS paperwork said that I was in the clear. Then while my loan is being processed, they cut off all loan activity. Now I’m in a position where if this HR 502 bill takes more than the next few weeks to clear, I will lose the tax credit. That’s the only reason I decided to purchase a house.
19 May 2010 at 11:06 am
Hi Patrick,
On the Tax Credit, you have until June 30th to close. I would though contact your congressman and senators directly to ask them what they are doing about getting this through Congress and passed.
My understanding is that it has passed the House and has been in the Senate. So you might start with your senators.
Hope that helps.
Betsy
19 May 2010 at 1:26 pm
what can you tell me about the GUS form? I was under the impression that if your GUS was approved, the money is secured.
19 May 2010 at 2:21 pm
Hi, Patrick,
The GUS approval is the automated underwriting system. It is similar to the AUS, automated underwriting system.
What these do is basically tell us if we have a deal but it is dependent on whether your information was entered correctly. Also the underwriter has to re-check all the information against the supporting documents you gave before you get a final approval.
Noramally the money is secured once you have locked in your loan. My understanding is that right now they aren’t taking any locks as there is no money.
Again, I would contact your senators as that is where the bill is sitting, in the Senate.
Hope that helps.
19 May 2010 at 3:31 pm
It’s interesting that you say the loan is secured when you lock the rate, because my rate was locked weeks before I sent the paperwork to USDA. I have written both Senator Murray and Cantwell, as well as my Congressman. We will see if that leads to anything. This is very disappointing. Thanks for your help.
20 May 2010 at 6:27 am
I was aprroved for my loan. it was backed by USDA. I was going to close on the 21st of may. I got a call from my leander that I will not be able to close cause USDA has ran out of money. Now my Question is, How is it that everything was good, everything was locked in and good, then a stop to it all. I have wrote both my Senator and my Congressman. I am just lost of how you can be good then nothing. I hope that you can give me some good advice.
24 May 2010 at 9:10 am
@mhint:
I was/am in the same position. My loan paperwork was submitted on May 9th, and my close date was supposed to be before the 28th. I heard a rumor that Senate will be voting on the extension today (Monday the 24th).
25 May 2010 at 9:29 am
Has anyone heard an update on this? I am in the same situation as many of you, our closing has been put on hold.
25 May 2010 at 9:58 am
Betsy-
I’ve been reading up on HR 4899 (in front of Congress as we speak), which is the “Disaster Relief and Summer Jobs Act of 2010″. This bill has nothing to do with USDA HR 502 that I can tell, as it actually cites USDA as a source of funding to pull from to help pay for this bill. There is a separate HR 5003 bill that hasn’t even been to the House of Reps. I’m confused why people are saying that these USDA loans will be saved by HR 4899…
HR 4899: http://thomas.gov/cgi-bin/bdquery/z?d111:HR04899:@@@L&summ2=m&
HR 5003: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR05003:@@@L&summ2=m&
25 May 2010 at 10:09 am
Ahhh, I found it. Page 9 of the bill:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4899rs.txt.pdf
26 May 2010 at 11:52 am
Does anyone know when the Senate will look at the bill? I do not want to loose the house I have under contrat.
26 May 2010 at 12:21 pm
Does anyone know when the senate is gonna vote for this bill? And where can I go to find out the lastest news on the USDA?
27 May 2010 at 3:45 pm
My husband and I are in the same position also. Our mortgage company says we are ready to close, but no funds…. The process of buying a house is already so long and stressful this just adds to the stress. So the big question is when will they pass it? My paperwork was completed weeks ago… We are ready to be in our house. This is crazy!
1 June 2010 at 6:32 am
Hi PH and Mhint,
The reason you ran in to problems with the funding is because the funds ( your funds in this case) are not “reserved” until your lender has given your file a clear to close. Once this is done, your file is submitted to a local Rural Development/USDA office for final approval at which time the funds for that specific loan are “reserved”.
I do have a couple of lenders that are taking new USDA loans and funding them based on conditional commitments from RD.
1 June 2010 at 9:01 am
Has the money been released yet? I have been on hold since late April early May. I’m suppose to close June 25.
5 June 2010 at 5:20 am
I am single father of a 5 year old son and purchasing a home now because of the $8,000 tax credit, it sounded too good to pass it up. Now its been clear to close for weeks,Boxes are packed and can’t close,funding ran out,waiting for GUS,waiting for the president to sign the bill,trying to beat the deadlines found the right house, now what can’t close and maybe not get tax rebate for first time home buyer because time is running out! HELP RIH
10 June 2010 at 3:49 pm
Any updates?
17 June 2010 at 8:40 am
I’m in the same position, our closing day was the 15th. Now nothing. My mortgaged guy says our only hope is that the seller agrees to wait it out, or to rent until something pulls through. I’m also nervous over the tax credit I hope they extend it past june 30th.
23 June 2010 at 5:17 am
Looks like im in the same boat as everyone else in here. The only info that I know is that this bill is stuck in the senate due to a pork fat issue. Our brilliant leaders added a 100 billion defense budget issue with the USDA renewal, that is why this issue is dragging its feet. Anyone know of where to find more up to date news on what bills are being passed in Washington? I thought I was nearly alone on the closing issue but I feel mutual comfort knowing im not the only one losing my mind on waiting.
24 June 2010 at 10:35 pm
I read that the tax credit deadline has been extended to sept. is this correct? Oh yea, and let me ask the popular question. When is the senate going to pass the usda bill so I can move into my house that was supposed to close on june 15.
29 June 2010 at 6:36 am
Any update on this bill yet, id really like to move before winter…
7 July 2010 at 7:07 pm
I started doing the paper work on a house and find out the home inspection was bad. I did all of this before April 30, 2010. I found another house will I still get the tax credit of 8000.00 dollars?
11 July 2010 at 8:26 pm
Unfortunately you must be in contract by June 30, 2010 with the house you are planning to buy. Since you have cancelled that original purchase and sale, you would not qualify for the First Time Tax Credit.
11 July 2010 at 8:31 pm
I’ve done some research on the USDA. No, the money hasn’t been approved yet. It is still sitting in Congress. The only good news I have heard is some banks/lenders are approving and funding some of these USDA loans. It depends on the lender your loan is being funded with. My suggestion is to ask your loan officer which lender they are sending your loan to and if it can be funded by them. My personal feeling is that each loan will be funded on its strengths. So that the stronger your loan is, the better chance you have to have it funded while Congress sits on this bill.
Also the First Time Home Buyer Tax Credit has been extended to September 30, 2010. So if your purchase and sale contract is on or before that date, you will still qualify for that tax credit.
11 July 2010 at 8:33 pm
That is true. And the USDA bill is still in Congress. I updated a reply about the USDA and what I’ve heard from other loan officers across the country.
15 September 2010 at 12:10 pm
DOES ANYONE KNOW IF THIS IS ON THE PRESIDENTS DESK YET?? HAS HE SIGNED IT?? WE ARE WAITING FOR THIS TO PURCHASE HOUSE. iT IS GETTING LATE IN THE YEAR, TODAY IS ALREADY SEPT 15TH!
16 September 2010 at 7:23 am
Karol,
I sent you a private email. It has been approved.
1 November 2010 at 10:32 am
i was told that i have been approved for a usda loan. i finally found the perfect house and now have been told that the usda is out of funds. The whole buying a house thing has me more stressed than i have ever been. now to make matters worse usda has no funds and i only have until 11/5/10 until the funds are either available or i have to pull out of the offer so i wont lose my earnest money. and to add to that the house will probably go up for auction if i have to back out.
15 December 2010 at 10:04 am
I was approved for direct lending for a house throught the USDA. We were suppose to close 2 weeks ago and they are out of funding I am told. When will funding be available so I can move on and the sellers don’t pull out of the agreement?
16 December 2010 at 10:18 am
Hi, John,
I checked with our main office. When you do an USDA loan, an investor (bank) is approving it then sending it on to USDA to approve. If they don’t have enough money or can’t carry the loan due to lack of funds, then yes, they may be out of funds.
I was told Chase does have money for USDA as that is who we send our loans to. Also being a larger investor, they can carry the loan if the money runs out.
I do hope that helps.
Betsy
20 December 2010 at 6:16 pm
Betsy:
There is a big difference on how guaranteed and direct loans are proceed. John said he was approved for a direct lending. It sounds like he is approved for a direct loan which would mean his loan is coming straight through USDA not the bank. If so, then his loan doesn’t get sent to the bank for approval doesn’t the USDA do the approval in house? Unless different states process different ways. I understand his frustration because I am in the same situation. I was supposed to close and a week before my closing – no funds and I am told to get an extension. The USDA has no funds anywhere in the USA, because Congress called all the money back on 12/8/10. Now if he is approved for a guaranteed loan, then he would have gone through a bank and your process would apply. We are all waiting to see what or even if they passed the budget last friday. If they passed the long term budget money is available in a few days. If a short term well it will take a bit longer to get funds. This is the info I got from the head office.
If I misunderstand John’s post, my apology to you.
14 January 2011 at 12:37 pm
Nice blog, I am going to bookmark it. I look forward to future posts.
23 January 2011 at 5:11 pm
Thank you!
23 January 2011 at 5:15 pm
I haven’t done one for a while. I do know there is a difference between guaranteed and direct. But I just started with a new mortgage company and will ask them what their take is on these loans and post back to you.
25 January 2011 at 3:24 pm
Still as of 1/25/2011 no funds are available. Ahh so frustrating.
28 January 2011 at 9:58 pm
Wow, I have been trying to find a blog about the USDA Rural Development direct home loans. This looks like a pretty good one. Does anyone know the name of the congressional bill? I have been trying to find it, and have not had any luck. I am in the same boat as many of you. I have the pre approval for a direct home loan. We applied in October, but they have no funds and just keep telling me that they do not know when any more funds will be available. Also they will not send my application to the underwriter until funds are secured. This is very frustrating. Any input would be appreciated.
30 January 2011 at 7:04 pm
Paula, I will look for it for you. But if you tell me what state you are in, I’ll put it out to my network to see if someone else can help you.
Betsy
30 January 2011 at 7:05 pm
Chris,
If you tell me what state you are in, I’ll put it out to my network to see if someone else can help you.
Betsy
1 February 2011 at 9:12 am
Betsy, thank you. I am in Colorado.