On July 27th, H.R. 4899, Supplemental Appropriations Act, 2010, passed in the U.S. House, and was signed by the President on July 29th. This will apply to all Utah homes wanting to participate in the rural housing program. It may also effect the sale of your Utah home.
Contained in this legislation is the authority needed to raise the guarantee fee in the USDA
Section 502 Utah Guaranteed Rural Housing Program to an amount not to exceed 3.50% (from 2.00%) of the loan amount. This change in the guarantee fee has already been referenced on USDA Rural Development loan approvals (RD Form 1980-18) that were issued “subject to Congressional
This legislation also increases the funding authorization level for the USDA Section 502
Guaranteed Program to an amount that is sufficient “to meet the remaining fiscal year 2010 demand.” Therefore, no additional funding shortfalls in the program are expected for the remainder of fiscal year 2010.
With the passage of this legislation that addresses the current funding lapse in the USDA
Section 502 Guaranteed Program, USDA Rural Development will begin the implementation
process; which will eventually lead to the elimination of the “subject to Congressional action” language on loan approvals that has been in effect since May 27th. Following the completion of all of the Agency’s internal requirements, USDA Rural Development is then expected to announce the restoration of funding for the USDA Section 502 Guaranteed Program.
Mortgage Approval Process:
- Basic Mortgage Terms
- How Much Can I Afford?
- Common Documents Required For A Mortgage Pre-Approval
- Top 8 Questions To Ask Your Lender During Application Process
- What’s The Difference Between An Investment Property, Second Home and Primary Residence?
- Seven Items Real Estate Agents Need To Know About Your Mortgage Approval