USDA issued a lender notice stating the USDA Rural Housing Single Family Housing Guaranteed Loan Program (SFHGLP) is temporarily out of funds as of October 1, 2011. Even though USDA is still issuing ‘conditional commitments’ subject to the availability of the commitment authority, many lenders are dropping the program, even with buyers in escrow!
Fortunately, our mortgage bank is still approving and funding California USDA Rural Development home loans during this temporary lapse in USDA funding.
Did you read about how Bank of America discontinued the entire USDA Rural Development home loan program in California?
What is the significance of October 1st, 2011?
September 30th is the fiscal year end for USDA. October 1st is the beginning of their 2012 fiscal year for budgeting purposes. USDA is waiting for congress to re-fund the USDA Rural Development Guaranteed loan program for 2012.
The USDA Rural Guaranteed Home Loan is a 100% financing no down payment mortgage program designed for low to moderate income home buyers to purchase a home in an eligible area. Get details here California USDA No Down Payment Home Loan.
How rural is rural?
In Riverside C0unty, the USDA home loan can be used in Temecula (Redhawk & Morgan Hill), Murrieta, French Valley, Winchester, Menifee, Sun City, Wildomar, Corona, Homeland, Romoland, Cherry Valley.
In San Diego County, the USDA home loan can be used in eastern Fallbrook, Bonsall, Rainbow, Valley Center, Ramona, Julien, Alpine, Borrego Springs, and Pauma Valley.
In San Bernardino County, the USDA loan can be used in Adelanto, Big BEar, Lake Arrowhead, Crestline, Lucerne Valley, Running Springs, and Twentynine Palms.
Here is a list of USDA eligible rural areas throughout California.
If you want to buy a home with no money down, call me at (951) 215-6119 or fill out this easy 3 step form below.
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