On October 18, 2022, the United States Department of Agriculture (“USDA”), Rural Development (the “Agency”) announced that funding for the Single-Family Housing Guaranteed Loan Program is available for the 2023 fiscal year (October 1, 2022 – September 30, 2023 ) after lapsing for a short period of time. The funding is authorized by H.R. 6833, the “Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023.”
The USDA will process all loans that closed during the lapse through the Agency’s Electronic Customer File System to advance eligible files with Conditional Commitments from a status of “eligible subject to the availability of commitment authority” to the status “Obligate Application.”
After a loan is obligated, the USDA can process a Loan Note Guarantee request from the lender. Lenders must submit their requests along with a closing package through the Agency’s automated Lender Loan Closing system.
Additionally, the USDA confirmed that there is no change for fiscal year 2023 to the current upfront guarantee fee of 1.00 percent and the annual fee of .35 percent for both purchases and refinance loans.
If you have any questions, please contact DocMagic’s Compliance Department.
