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The USDA is begging for people to borrow their money!

The program will be undergoing significant changes in October with the introduction of a monthly PMI. Until then they have plenty of money and are eager to lend it;


$24 billion dollars is available in Fiscal Year 2011 (through September 30, 2011) in the Single Family Housing Guaranteed Loan Program (SFHGLP).  To utilize these available funds, WE NEED YOUR HELP!

SERVE RURAL HOMEBUYERS!  In the past, funding shortages due to overwhelming volume and program demand may have prohibited some home buyers from utilizing the SFHGLP.  Fiscal year 2011 will be different!  Congress responded to lender requests for more funding and delivered $24 billion for the current fiscal year!

LEND WITH CONFIDENCE!  Future Guaranteed Loan Funding Updates will continue to be released in order to keep our lending partners informed of available funding levels.

As of May 26, 2011: 


TOTAL # LOANS:                 70,759







Beginning October 1, for the first time in the history of USDA, the Single Housing Guaranteed Loan Program will have an annual fee. This fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan. In other words the program will now require monthly PMI.

This article was written by ricardocobos

Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183


  1. I was recently told that if I’m not in the initial stage of loan app submitted and pre-approval (via Wells Fargo’s FHA pre-approval process) by August 15th, that I would have to wait until after Oct 1st to buy a home and would be subjected to the new USDA guarantee loan terms to include the monthly PMI.

    Can someone please verify if this is a true statement A.S.A.P.? I’m not sure if this potential broker is just trying to make me commit to him or if this is legit info. When I asked how much the monthly PMI would be, he said he didn’t know!… it’s been over a week now and so I Googled it myself and found it right away!

    Any advice would be greatly appreciated since I’m down to the wire time-wise (either way).


    1. Christina – Great observations! Mom always told me that if I couldn’t say something nice about someone not to say anything at all. Because I didn’t take all of her advice It sounds to me like your Mortgage Broker is a bit “shall we say “not so ambitious” to say the very least.

      There are three things that need to be addressed in what he is telling you;

      1) At this time the USDA Rural Development Guaranteed Loan Program depends wholly upon appropriations from Congress to fund this program. Most people are unaware that the US Federal Governments fiscal year doesn’t run Dec 31 to Jan 1st likes yours and mine does or even June 30th to July 1st like most corporations rather from Sep 30th to Oct 1st. (leave it to the federal government to be so screwy!)

      2) Historically the USDA has run out of available funds to guarantee loans made by lenders under the Rural Development Program by late Summer due to the increased Summer buying activity and nearing the end of their fiscal year.

      3) What makes this year different is this year for the first time ever the USDA will be requiring a monthly PMI in addition the UP Front Funding Fee (read more about PMI here). The7y say the reason is because this move will allow them to de-couple from Congress and become self-funding. Below is an example of how those October 1st changes will impact your monthly payment.

      The new PMI/guarantee fee will be 1% of the total loan amount plus a .3% annual fee. The calculations on this fee are a lot more complicated because it is calculated on the average yearly principal balance.

      $100,000 loan amount – add 1% for the upfront PMI fee. So your monthly Principal and Interest payments are based upon $101,000.

      On a monthly basis, you will be paying $25 a month for that original $100,000 loan during the first year… as your balance goes down, the amount you will be paying will diminish as well!

      PS – if you Liked the advice you have received, please show your appreciation by “Liking” me on Facebook (see the link to the right).