On October 2, 2024, 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 2025 fiscal year (October 1, 2024 – September 30, 2025 ) after lapsing for a short period of time.
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” over the course of the next 3-4 business days. An updated Conditional Commitment will be generated electronically and provided to lenders. Loans that have not yet closed are not eligible for submission to USDA until the loan is successfully obligated.
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.
On October 3, 2024, DocMagic will be updating the Conditional Commitment for Single-Family Housing Loan Guarantee (Form ID: RD355518.RH) to remove the attachment that added required language regarding the availability of funds.
If you have any questions, please contact DocMagic’s Compliance Department.
