USDA

Great news, Morris! USDA has extended you until 2020! After several years of living 6 months to 6 months, we now have you

Single family housing loans are made possible through guarantees provided by the United States Department of Agriculture, Rural Development.

locked up for 6 years. It wasn’t long ago that I wrote about this.… but it will be a while until I have to again. This is good for both buyers and sellers interested in Morris.

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Potential home buyers in Morris should be pleased to know that Rural Housing loans through the USDA will not go away for several months. It’s pretty much an annual thing- the fear that the program will become unavailable in Morris…. but at least until September, we’re in the clear.

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Just saw the following note passed down the pipeline. It’s (temporary) good news for those looking to purchase in Morris.

Happy new fiscal year!

With the signing of the Continuing Resolution last night, government operations, including Illinois Rural Development, have resumed.

Many USDA websites continue to be unavailable.  Please be patient as our National Office is working on this.

Additionally, eligibility for areas that were to become ineligible on October 1st due to the 2010 Census has been extended to January 15, 2014 due to language in the continuing resolution.

Conditional Commitments that were issued prior to October 1, 2013 will continue to be honored.  Please be patient with us as we work through the backlog of files from the previous two weeks.  We will be issuing new conditional commitments “subject to funding” until our budget authority is allocated to states.  The guarantee fee structure for FY2014 remains to be a 2% up-front guarantee fee and a 40 basis point annual fee for both purchase and refinance transactions.

Any closing packages that were returned to you as undeliverable can be resent to the agency at the below address:

USDA Rural Development

Attn: GRH

2118 West Park Court, Suite A

Champaign, IL 61821

Any questions can be sent to Champaign-GRH@il.usda.gov.

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FHA will continue to process loans during the government shutdown, as reported here by Inman news.

USDA, however, will not be processing loans during this time. This is especially a bummer for the client of mine who found a perfect house at a great price with his USDA loan late last week. His lender sent me the following note:

“FYI—USDA has been effected by the government shutdown—at the present time, they are unable to do residential loans.  We are proceeding to send the applications in hope that this will be a temporary issue.”

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No April Fool’s joke here. Today marks new changes to the fees associated with using an FHA loan. Essentially, private mortgage insurance (PMI) on a loan is here to stay- no more getting out at 78%. Some additional fees will make it more costly to obtain a loan.

Here are some thoughts on the web:

This makes a USDA loan an even better option for those areas that can get it (like Coal City and other smaller local communities).

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