Rural Development Begins Obligating Sec. 502 Loans

September 23, 2010

Source: NAR, Jerome Nagy
Phone: (202) 383-1233

Reminder: U.S. Rural Development earlier announced it would begin obligating Sec. 502 single-family guaranteed loans Sept. 8, with a new upfront fee of 3.5 percent. The fee for refinances remains at .5 percent, but will increase to 2.25 percent on Oct. 1.

The agency says its priority is to address a backlog of approximately $1.6 billion in conditional commitments issued since May 26. The agency says it has sufficient funds to meet guarantees for the remainder of the fiscal year.

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