Rural News

FY 16 Funds Now Available for USDA Sections 502 and 504 Loans

Fiscal Year (FY) 2016 funding for Rural Development’s Single Family Housing Guaranteed Loan Program is now available. The funding is authorized by the Continuing Appropriations Act, 2016 (P.L. 114-53, H.R. 719).

From the USDA Rural Development National Office

Fiscal Year (FY) 2016 funding for Rural Development’s Single Family Housing Guaranteed Loan Program is now available. The funding is authorized by the Continuing Appropriations Act, 2016 (P.L. 114-53, H.R. 719).

Requests that received Form RD 3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee” (aka Conditional Commitment), contingent upon the availability of an appropriation, will be obligated in the Agency’s financial system over the next 2-3 business days. An updated Conditional Commitment will be electronically generated by the Agency to remove the “contingent upon” language. Lender receipt of the updated Conditional Commitment will signal the request has been successfully obligated by the Agency. NOTE: Closing transactions are not eligible for submission to USDA until a loan is successfully obligated.

Once the loan has closed (including loans that were closed prior to the obligation of funds by the Agency) the lender may submit their request for Loan Note Guarantee along with a closing package. For manually submitted packages, ensure the lender certification on the Conditional Commitment is signed and dated after the Agency’s obligation date (the issuance date on the updated Conditional Commitment). Lenders using the Agency’s automated Lender Loan Closing (LLC) System will complete the lender certification electronically (i.e. no manual signature/date required).