Sunday, April 4, 2010

Is USDA Out of Funds To Loan Home Buyers?

The answer today (April 4th, 2010) is NO. The Department of USDA-RD still has allocated funds to cover mortgage loans. Now, with that said, as of today, USDA is reporting that they have $2.8 billion dollars left to lend. That sounds like a lot of money, but considering they were allocated $13+ billion in October of 2009, it's not. Based on the current volume of fundings, experts are estimating that USDA will be able to uphold their committment to funding mortgage loans through April 2010. At that time when funds are exhausted, the USDA-RD division will await a re-allocation of funds, which sceptics say will not be filled until October-November 2010. I on the other hand tend to be more optimistic and realistic, and "speculate" USDA-RD will be re-allocated funds by July 2010 ("by" being the key word, I beleive sooner...). I am currently closing USDA purchase loans in 17-20 days. So to date, I am continuing to take USDA mortgage applications. Make sure you visit my USDA Website @ and feel free to contact me directly at (425) 350-7136 with any questions!