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Great news for buyers who are depending on the USDA Rural Development Program for 100% Financing. On July 27, 2010, the House made a motion to suspend the rules on H.R. 4889, thereby moving forward the bill that would give emergency appropriations to the USDA Rural Development Program. The motion passed 308 - 114 with 10 abstaining from the vote.

This new appropriations bill will give this program much needed funding for the USDA Rural Development Program. New guidelines will be in place and will be announced by the USDA National office as soon as the dust settles.

Our company has been able to continue to close and fund these loans through this 'interem' period, but many lenders haven't been so lucky. This will make way for Automated Underwriting again as soon as they make the necessary changes to GUS (Government Underwriting System). This means no more 'mandatory' manual underwriting for credit-worthy borrowers and we can move back to a more 'streamlined' approval process.

As usual this was not the main purpose of this bill. This bill is also known as the Supplemental Appropriations Act of 2010 or the Disaster Relief and Summer Jobs Act of 2010. This bill also had appropriations for the Department of Homeland Security, the Department of Labor and Small Business Administration (SBA), Department of Transportation (DOT), Department of Commerce, as well as other parts of the Department of Agriculture.

View details of the Bill here.

Republicans and Democrats were both split on the bill for various reasons, mostly stemming from the War in Afghanistan and Iraq. Those opposing the measure would rather see these funds spent here domestically rather than abroad. But no need to get into a political discussion, right?

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Regardless, this is good news for home buyers, and I'm glad other lenders can start funding these loans soon as well.