Washington Report

Advocacy Updates from Washington D.C.

Guaranteed Loan Program for Rural Areas Issues Loan Processing Advisory

The U.S. Department of Agriculture’s Single Family Housing Guaranteed Loan Program has issued an advisory for lenders that will also be of interest to Realtors with buyers and sellers over the next several weeks.

The advisory recommends that you be alert as to the processing times for loan guarantees, times that can vary widely by state.  The advisory includes a link to state contacts who can provide the current average processing time for loan guarantees. 

If a buyer’s loan package is not reviewed and approved for a Conditional Commitment by USDA Rural Development  before Oct. 1, 2012, the buyer will be charged the FY 2013 fees, which require a 2 per cent upfront guarantee fee and annual fee of .40 per cent.

USDA said the new fee structure will also apply to refinancing and that budget authority for refinancing may lapse before the end of FY 2012.