USDA Funding (loans, buyers, budget)

[MSPPERSON]

I have been approved for a USDA Direct Loan, but have just been notified that the funds may not be available for 120 days or so. Has anyone received one of these loans before, and if so, how long did it take for the funds to arrive? Thanks

[armx]

They must have run out of the funds allocated for the current fiscal year so the money that you are going to get, if any, is from the next fiscal year - after the congress passes the budget and new monies start flowing thruough the "slow as moses" system .. and, as you can imagine, nobody can tell you when that will happen realistically. .

From past experience, I think it will be prudent to think it will happen in jan-march 2010 and hopefully you are in the pipeline at a high enough number and your lender will have to be on the ball to snatch the money before it goes within a very very short period. That program is extremely popular because it lets qualified buyers borrow 100% or more to purchase a home.

It might be a good idea to have a backup saving plan or use other mortgg. programs or locate appropaiate properties with the help of a Realtor to be able to accomplish your goals.

[MSPPERSON]

Thanks for the info. I was afraid that this would happen. Maybe its just too good to be true. Thanks again.

[armx]

Did you know that there are other programs available that let you have no down payment, and still be able to buy a house. Because the $8K gift from uncle sam is still there which is supposed to expire soon but at present it is still in play.