USDA Has Funds Available For Home Financing

USDA Has Funds Available For Home Financing

There has been a lot of discussion and anticipation as to when Congress would re-appropriate funds for the USDA loan program and when it would come back.   Effective on June 1, 2010, USDA released its program to lenders under new conditions that would affect a homebuyer’s decision.  It will also affect how much buyers can purchase based on their DTI (Debt to Income) ratio.

The following are the major changes to the  USDA Guaranteed Rural Housing Loans program

  • First: The USDA Funding Fee is no longer 2.00% (two percent)
  • Second: The “NEW” USDA Funding Fee is 3.50% (three and a half percent)
  • Third: The GUS System (Guarantee Underwriting System) is currently turned off.  This means that the homebuyer’s qualification will be strictly adhered to the USDA Guidelines.

Until further notice from the USDA, the program will be manually underwritten, meaning the underwriter is responsible for all the checks and balances provided by the USDA’s guidelines.  GUS will not be utilized to determine a homebuyer’s credit & income qualifications.

For more information, please contact us at 480.344.3671

Comments

  1. Hello, I would like to know whe the GUS will be back on and running to turn in files for USDA.
    thanks, marcela

Trackbacks

  1. […] FHA loans were the first government backed mortgage introduced in 1934 as one of the many government solutions to the Great Depression.  It is the only government backed mortgage that is available to the entire marketplace (VA loans are for qualified military veterans while USDA loans have an income limit and are for designated “Rural” areas only).  FHA has seen a 500%+ increase in market share from 2006 to 2010 from 3.77% to 19.73%.  The funding for these programs have become more limited, with FHA announcing problems with funding in late 2009 and USDA mortgage funds reported low funds before the end for the first quarter (funds are now available). […]

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