According to the announcement I received today, USDA is authorizing the issuance of Conditional Commitments for the Single Family Housing Guaranteed Program (SFHGLP) after the current appropriated funds are exhausted (which they are.)

There are conditions to the commitments and nothing about what the guarantee fee is to be, if it is different than the current 2%. It does say the lender needs to contact the State SFHGLP coordinator to determine the amount of the guarantee fee to be charged. The announcements said that the total Conditional Commitments would be issued up to an additional $2.5 billion in loan guarantees.

Accordingly, lenders may continue to process guaranteed loan requests, receive Agency (USDA) Conditional Commitments, and close loans during this timeframe. There are steps to follow that include no reserving of loan funds. This should be excellent news for those borrowers that were in the loan process when USDA stopped loan guarantees. Especially concerned, I assume, would be those borrowers that were trying to close prior to the expiration of the tax credit.

I expect it will take a day or so before all of the procedures are in place for the new commitments. I know it will be an important step.

Contact Me

If you would like more information about the USDA mortgage program, give me a call. Even if you are already working with a mortgage lender, call me. You wouldn’t have back surgery without a second opinion, why would you buy a home without one. Call me for the second opinion. We can discuss your specific information and if you are in the best product for you, I will tell you so. I am Fred Chamberlin, Senior Mortgage Consultant at Alpine Mortgage Planning, 1200 Executive Pkwy., Eugene OR 97401. I am here to help you with the mortgage loan process and also help you avoid stress. The mortgage process is changing rapidly, make certain you are working with someone that can keep up with the changes. You can reach me at 541-342-7576/541-221-3455 cell or by e-mail. Trust experience to help you with your Eugene/Springfield mortgage questions. One final note, my offer is not limited to Lane County but can be used anywhere we are doing business. Call today!

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