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USDA Conditional Approvals

September 21, 2021rashtonBulletin

Overview

USDA Rural Development has announced their policy regarding Fiscal Year 2022 funding for Single Family Housing Guaranteed loans. As stated in the announcement, during the brief lapse in funding for the Fiscal Year 2022, Conditional Commitments will be issued with “subject to the availability of commitment authority for purchase and refinance transactions” effective October 1, 2021 until funds become available in their system. During this transition period, Carrington Mortgage Services, LLC (CMS) will close loans with Conditional Commitments (Form RD 3555-18/18E) issued with a “subject to” condition for purchase and refinance transactions.

As a reminder, the USDA Up-Front and Annual Fees for Fiscal Year 2022 for purchase and refinance transactions are as follows:

  • Up-Front Guarantee is 1.00%
  • The Annual Fee is 0.35%

Contacts

Please contact your Account Executive or Account Manager with any questions.

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