October 5th, 2011 4:25 PM

On Tuesday afternoon, the Appropriations Committee passed a bill to make funds temporarily available for the USDA Rural Development program through November 18th, or until a final approval of the appropriations bill passes. What this means is that USDA can now issue conditional commitments to lenders.  What that means is USDA approves the loan and will fund lenders who originate these loans.

At this point in the process the funds have not yet been loaded into the USDA system by the government. Because of this, I think conditional commitments will be issued “subject to the availability of funds”. That means that most lenders will not fund these USDA loans until the USDA approves them without the “subject to the availability of funds”.

My company, Envoy Mortgage,  realizes how important your relationships are. Borrowers, Realtors and other business partners rely on a lenders ability to close the transaction. Even in times like these where the entire lending industry is in the same boat in regards to funding USDA loans, clients still look to lenders for a solution.

My mission at Envoy Mortgage is “Preserving the Dream of Home Ownership”. In order to continue living up to my mission statement, Envoy Mortgage has decided to continue closing and funding USDA loans that have already been submitted to underwriting. This will be a temporary solution until such time we get further guidance from USDA.

BEWARE:  Many lenders will not fund these loans during this time frame.  Be proactive and specifically ask the loan officer -  "Will your company fund USDA loans while the USDA is waiting on funds?"

I will continue to keep you abreast of this situation and will send out updates as things evolve further.

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