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Rural Housing News
September 24, 2008

Funds Usage Accelerates for Single Family Housing Guaranteed Loan Program

To date, the USDA Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP) has obligated over $6.7 billion in loan guarantees. This all-time record is thanks to our partners in the lending community who are to be congratulated for participating so strongly in the SFHGLP. The obligation rate for the SFHGLP has accelerated significantly over the past few days, and if the increased rate of obligation continues, we project that funds may be depleted by this weekend. There may be no available funds for the last two days of Fiscal Year 2008, September 29 and 30.

Nevertheless, as mentioned in our communication dated September 19, 2008, USDA Rural Development will continue to accept and process applications, and will issue Conditional Commitments “subject to receipt of Congressionally appropriated funds.” Lenders will continue closing loans under the SFHGLP; business as usual. There will be no interruption of service by USDA Rural Development during any period in which funding is not available.

The United States Congress is working on a Continuing Resolution (CR) which in its current draft appears to provide significant funding for the SFHGP during the CR period in Fiscal Year 2009. Fiscal Year 2009 begins on October 1, 2008. Once funding is appropriated by Congress and has become available to the SFHGLP, USDA Rural Development will be able to issue Loan Note Guarantees for Conditional Commitments that were issued “subject to receipt of Congressionally appropriated funds.”

Questions about this communication may be addressed by dialing the Single Family Housing Guaranteed Loan Division at (202) 720-1452.


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com