USDA funding for fiscal year 2011-2012

I continually get questions from borrowers who are being held up from closing transactions because USDA has not gotten funding yet for the fiscal year 2011-2012 (October 1st 2011 to September 30, 2012).  While it is true that USDA funding approval is tied up in the rest of the budget debate, (as of November 17th, 2011) that does not mean that USDA loans cannot be closed in the interim.

On the guarantee program through USDA approved lenders, some lenders are able to close on what are called “conditional commitments,” meaning they can close the loans in anticipation of the funding being approved by Congress.  I don’t know if we are one of only a few lenders closing USDA loans this way, but I continually hear from real estate agents and borrowers their belief that loans cannot be closed until funding is approved.  This is not the case.

If you are in California, and you are being held up closing a loan on the USDA guarantee program, please feel free to contact us if you need help.  If you are in another state, just ask around to find out who is closing USDA loans currently on conditional commitments.  We are currently closing USDA loans so their has to be other lenders out there doing the same.

Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370. He can be reached at, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act.  The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Terms and conditions apply, all loans subject to underwriter approval. Subject to change without notice. Guild Mortgage Company NMLS #3274

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