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The Rural Housing Service (RHS) budget for its Section 502 Direct Loan Program must be spent by September 30, 2015. As of September 16, 2015, RHS anticipates having enough loan applications to meet its budget before the end of September. If you have a homebuyer who is eligible for the program, they must have a funding commitment form (Form RD- 3550-7) to be eligible for funds before the end of the month. If you have any questions about the Section 502 Direct Loan Program, please contact your state office to determine an applicant’s eligibility and availability of funds.
If an interested homebuyer does not receive a funding commitment in September, the homebuyer will have to wait until funds become available when Fiscal Year 2016 begins October 1, 2015. It is likely that the government will be funded under a Continuing Resolution (CR) which could cause a delay in funding for some programs, such as the Section 502 Direct Loan Program, moving into Fiscal Year 2016.
Section 502 Direct Loan Program Information
Section 502 Direct Loan Program: Best Kept Rural Housing Secret