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Program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by April according to a recent announcement by the United States Department of Agriculture (USDA). Lane County Rural housing sales will feel an immediate impact when USDA stops approving loans. The USDA normally runs out of money near the start of their new fiscal year and have issued Conditional Commitments on loans approved prior to more funding being received.

This year, because it is happening so early in the year, once the funding is exhausted, USDA will not issue any Conditional Commitments until additional funding is available in October. Right now, all loan approval and funding is subject to a Conditional Commitment being obtained from USDA. What this means is that loans that are not funded when USDA runs out of money, even if they are in the approval process, won’t close until USDA is funded again (hopefully by October.)

The USDA program is a huge tool for property purchases in towns like Cottage Grove, Creswell, Junction City, Veneta, Florence, Harrisburg and Oakridge. The running out of funds for this program will be a big blow for the Real Estate market. Now would be a good time to contact legislators to see if we can get funding sooner.

You can contact your U.S. Congressman, U.S. Senator, professional lobby and employer to get them working on a solution. If this happens, many homeowners will be lose out on their loan closing, even if the loan is approved.

Write to your Congressman

Write to your Senator

If you have been thinking about buying a home using the USDA Guarantee program in Lane County, we can certainly try to get the loan closed prior to USDA running out of money, but if anyone guarantees that it can be done, they don’t really know. Call me today at 541-342-7576/541-221-3455 or send me an e-mail to discuss options.