Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing Changes 10/1/2011

Kentucky USDA/Guaranteed Rural Housing Program
Federal Budget Battle May Affect Funding Effective October 1, 2011
 
Despite changes in the fee structure effective October 1, 2011, Congress must appropriate funds for the Kentucky Guaranteed Rural Housing program. Assuming Congress passes legislation currently under consideration to keep the federal government fully functional, a number of days will be required to set up the authorized allocation for distribution.
 
Delays in the issuance of the Conditional Commitment should be expected. We  will be able to underwrite and condition the loan file. However, we will not be able to close and fund the loan until the Kentucky  Rural Housing Conditional Commitment is issued by the Local Kentucky RHS office.
 
We will notify our clients when RHS resumes the issuance of Conditional Commitments.

Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing
 
  

September 30, 2011 FISCAL YEAR 2012 COMMITMENT NOTICE!

Please find attached the “Fiscal Year 2012 (FY 12) Commitment Notice” for the Single Family Housing Guaranteed Loan Program. 

Beginning October 1, 2011, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority.” 

 The FY 2012 fee structure will be as follows:

2 percent up-front fee for purchase transactions;

1 percent up-front fee for refinance transactions

; and 0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.

 Form RD 1980-21, “Request for Single Family Housing Loan Guarantee,” has been revised with an effective date of 10-2011.  The revised form incorporates the Annual Fee disclosures.  Therefore, beginning October 1, 2011 all “Request for Single Family Housing Loan Guarantee” must be submitted on the revised form.  The prior version of the form is dated 10-2010, and will not be accepted for FY 2012 Conditional Commitment requests. 

The revised form is attached to this communication and can also be obtained from the following link: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1980-21.PDF

As a reminder, the new Guarantee Fee and Annual Fee Calculator is available for download at:https://kentuckyusdaloan.wordpress.com/2011/08/30/kentucky-usda-rural-development-guaranteed-section-502-loans/

 Questions regarding this notice may be directed at 502-905-3708

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