Lawmakers, Obama Administration Consider Additional Funding for Section 502 Guaranteed Home Loans

摘要

Lawmakers and the Obama Administration are attempting to find a way to meet the continuing heavy demand for Section 502 single-family guaranteed loans, a program projected to run out of funds for new mortgage loans by May 1, with five months remaining in the fiscal year.rnThe program has a $12 billion commitment limit, andrna March 9 Rural Housing Service (RHS) notice alerted state directors that funds will likely be exhausted by the end of April. Once this occurs, RHS will not issue conditional commitments. However, limited funds may become available for disaster areas declared in 2008 or for Hurricanes Katrina and Rita.