Does the USDA rural financing loan have money now? I want to purchase in Charles County MD

Asked by Ashley, 20748 Tue Sep 7, 2010

I know a few months ago they ran out of money. I heard that the money was available again, is that true?

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16
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Tue Sep 7, 2010
After reviewing the answers there seems to be some conflicting information. I recommend speaking to a mortgage banker/broker. <there is a big difference> and not relying on a realtor ANY realtor for loan advice. A good realtor should recommend a mortgage advisor right away before showing any homes in my opinion. Realtors I am sure could be offended by my words but again I see on Trulia and in person them attempt to answer questions that they aren't qualifed to answer. It just makes our job harder when we have to correct the outdated or wrong answers. If you want to chat about USDA loans let me know. But being from Montgomery county we see very few of them and I think you should speak to someone in Waldorf. They should know more about them.
1 vote
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Tue Sep 7, 2010
FSBO,

Thanks and I agree. I have no problem saying I am not the best person for the job or "I don't know but I'll find out." Ashley might be more confused now than when she started out. I started doing this so people could get honest straight forward answers. If they use me great. If they don't still great. I would suggest she call USDA but that might be the wrong thing to do if she wants the right information. I stand by my first answer, stay local on this one.
0 votes
Yvonne L. Jo…, , Washington, DC
Tue Sep 7, 2010
Ashley - My lender tells me that the USDA Guaranteed Loan program is scheduled to give commitments starting mid-September/early October. So, it's not to early to get qualified and start looking for a property to purchase.
0 votes
FSBOsuccess, Home Seller, 28590
Tue Sep 7, 2010
Brett, you gave the best answer.

Realtors, if you don't throughly know about a mortgage program, don't answer questions about it. Nearly every realtor gave completely wrong information to this question. Lack of knowledge can be a dangerous thing!
0 votes
FSBOsuccess, Home Seller, 28590
Tue Sep 7, 2010
FY 2011 is provided in the annual government budget that begins on October 1. The funding gets used up every year before the fiscal year ends and every year Congress has to pass supplemental funding. This year they raised the guarantee fee to help the program become self sufficient (can we all laugh at a federal gov't program becoming self sufficent!).
0 votes
The Benya Gr…, Agent, Alexandria, VA
Tue Sep 7, 2010
@FSBO Success You're right, funding was approved some time ago, but it's not quite as simple as you make it seem. The funding that was approved a couple months ago is only a guarantee through fiscal year 2010, which ends on 9/30/2010. There is no guarantee for FY 2011 yet, and as a consequence, many lenders, including Bank of America, Wells Fargo and BB&T have opted to not participate in such a limited time frame. As I mentioned in my previous comment, and Bill mentioned as well, there are lenders who are providing the loans, but you have to look a little bit outside the box. Just because congress approves the funding doesn't mean that the loans are easily available, and there is a deadline for the funding which is fast approaching (again)
0 votes
ANDREW OLLICK, Agent, NAPLES, FL
Tue Sep 7, 2010
Since USDA doesn't put up the money themselves, some lenders are still funding even when USDA is out of money. If you contact a good mortgage broker who is affiliated with 10 or so banks, they'll be able to find at least one lender who's still funding.

Good Luck!

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
http://www.andrewollick.com/realestateblog
0 votes
Larry Humes, Agent, Bellingham, WA
Tue Sep 7, 2010
It may be of note that Mortgage Brokers won't want a buyer to go directly to USDA, as there's no way for them to get paid, however, funds are available when going direct (however it does take longer to go direct - figure that), when brokerage funds are not available.

Larry Humes
0 votes
Bill Wootan's…, , Waldorf, MD
Tue Sep 7, 2010
I believe that they do not have funds now, but I use Craig Gough at First Mariner Mortgage - they cloose on the loan and keep it till the funds are available, so you can buy now!

Contact Craig at 301-899-5630 (Cell) or 301-870-7420 (Ofice)

We can help you find a home that will qualify - call me at 301-870-8400 and ask for Team One!

Bill Wootan - Team Leader
Century 21 Associates
Web Reference:  http://www.billwoootan.com
0 votes
FSBOsuccess, Home Seller, 28590
Tue Sep 7, 2010
Funding was NOT taken back. Congress approved supplemental funding a couple of months ago. I would have thought realtors would be up to date on different mortgage programs.
0 votes
brent mendel…, Mortgage Broker Or Lender, Bethesda, MD
Tue Sep 7, 2010
It will be very difficult. USDA programs got funding back and then I heard lost it again. I am not an expert on the programs so don't take my word for it but definately be prepared for long waits and the possible loss of funds even up to right before closing. Alot of people got burned the last time they ran out of funds. This site will help make sure you can qualify. Both the home and your income must qualify for the program. Along with the credit score of course. Hope this helps.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
0 votes
FSBOsuccess, Home Seller, 28590
Tue Sep 7, 2010
Boy, guys. Check your information before answering.

Jonathan, supplemental funding was approved by Congress several months ago!

Jayne is right...get a savvy and KNOWLEDGABLE real estate agent or better yet a mortgage broker. You can see the wrong information you can get when someone isn't up to date on the USDA program.
0 votes
FSBOsuccess, Home Seller, 28590
Tue Sep 7, 2010
Larry, you don't go directly to the USDA to get the mortgage unless that is something done in Maryland. It also doesn't take 4 months to go through the process. It depends on the load of the local office that gives the approvals. Ashley can call them and find out. You also don't have to put ANY money down except possibly paying closing costs. That is one of the biggest draws of the program besides no PMI. Please be careful of the information you give out!

Ashley, I am going through the process right now. Find a mortgage broker or company that makes USDA loans and give them a call to have a sit down to discuss everything.
0 votes
Jayne Vaughan, Agent, Clarks Summit, PA
Tue Sep 7, 2010
Ashley

One to to add about their website and if a property address qualifies. I have had a personal situation with a home in my area that came up that it was not eligible. When you looked at the map, the USDA system had the address located on the wrong side of the road.

After numerous calls to their office they did indeed say that their system is not perfect and that I was correct that it was eligible.

Moral of the story, get a savvy Realtor who is familiar with USDA regulations, etc. They will make sure the USDA site is correct.

Good Luck

Jayne Vaughan
0 votes
Larry Humes, Agent, Bellingham, WA
Tue Sep 7, 2010
USDA does have funds to loan. You'll need to go directly to USDA, and not go through the mortgage broker system, as they do not have access to the direct lending funds that are available from your local USDA office. If you have the address of a house, you can go to thye USDA website and input the address to find out if the house location qualifies (very important - don't make any assumptions). Once you've determined that the house is "viable", then check in with your favorite Realtor, and have them write an offer. Funding will take a long time - figure that 4 months isn't out of the question - - and there's lots of hoops to jump through, but if you're patient, you can get a great home for little down - - one of my recient buyers finalized a purchase of a 2200 sq ft 4 br home and had a little over $700 out of pocket.

Feel free to contact me if you have any additional questions (Larry@LarryHumes.com), or visit http://www.LarryHumes.com .
0 votes
The Benya Gr…, Agent, Alexandria, VA
Tue Sep 7, 2010
From what I understand the money is still not available, however, I have seen clients able to get the USDA loans to closing through Envoy Mortgage because they are still allowing the loans to be written and pulling the financing privately until the money comes through. I would recommend contacting Brian Mayer @ Cell - 443-624-9398. He's a loan officer with Envoy and he should be able to help you out. Best of luck!
Web Reference:  http://www.somdexpert.com
0 votes
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