It looks like 100% loans will be on hold for those that aren’t submitted almost immediately.  Below is part of a notice that USDA sent out an email this week.

Notice of Funding

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.

Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because it is not certain when additional funding will be available. 

A lender sent the following and they won’t accept a new file for submission after March 19^th.

We have received notification from the USDA Rural Development Administration that funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010. Once funding is exhausted, the Agency will not issue conditional commitments subject to the receipt of appropriated funds. Additionally, the Reservation of Funds system will not be used, additional funds are not expected until October 2010. USDA is requesting that if you have an RD loan that can go FHA that you convert it to FHA.

What this means is that until a loan is submitted to RD AND APPROVED AND A

CONDITIONAL COMMITMENT has been issued, there is no guarantee that the loan will be

funded.

• If a loan has been submitted to RD and is waiting in queue and appropriated funds

have run out prior to an RD Conditional Commitment being issued, the loan will not be

funded. Please keep this in mind when scheduling closings.

Lets hope they get funding again soon.  We all need to contact our local reps to get this on the radar for funds.  The housing industry can't stand to lose another program.