USDA Update

The

USDA funding extension was passed in the appropriations supplemental bill earlier this week and is expected to go to the President for signature this week.

The bill permits USDA to charge 3.5% premium and .5 annual fee, however, USDA has indicated they will not implement an annual fee at this time.

While the President has not signed the bill yet, it is a virtual certainty that he will. In the meantime, Chase is purchasing USDA loans utilizing conditional commitments. Attached below is the most recent announcement from Chase with more information.

SWBC will begin allowing USDA loans to close effective Monday, August 2, 2010. The first payment dates for these loans must be no sooner than October 1, 2010.