Call to get Pre-Qualified: 800-806-9836 x280
USDA Loan Pro Logo
USDA Vendor Logo

Have you been told that the USDA is out of money?

October 1st, 2021 by Sean Stephens

Has a lender or loan officer told you that the USDA is “out of money”?

Each year around this time we receive calls asking if the USDA LoanWhy do lenders say USDA out of money? program is “out of money”, and because there is so much misinformation about our topic today, this short video will share the facts that you need to know and help set the record straight.

Also, if you have not already done so, don’t forget to download our USDA Blueprint for Success. This is a great educational resource for the real estate community and is designed for both homebuyers and their Realtors.

Has a loan officer told you that USDA is “out of money”?

Just to give a brief background on our topic today, the USDA fiscal year runs from October 1st until September 30th and at the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time –approximately two weeks.

However, as many have been led to believe, this does not meant that that the USDA program is stopped in its tracks, but instead during this temporary lapse in funding,  USDA Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.Florida USDA Income Limits

So, what does this mean to homebuyers and Realtors?

Quite simply, depending on how your lender is set up to do business at this time will determine if they are able to continue processing and closing USDA loans without interruption.

The good news is, at Metroplex Mortgage Services it is business as usual as we continue to accept applications, process, and fund USDA loans without delay!

Here is an overview of what to expect at this time of the year:

  1. As a USDA Approved Lender,  we will continue to submit applications for purchase and refinance loan transactions to USDA;
  2. USDA Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;
  3. Upon receipt of the USDA conditional commitment, loans will continue to close as scheduled;
  4. Then, when funds become available, USDA Rural Development will obligate (reserve) funds for Conditional Commitments that were issued for loans subject to the availability of commitment authority; and
  5. Once these loans are obligated, USDA Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified and all conditions of the Conditional Commitment are satisfied;

Remember, 2nd opinions are always important (especially around this time of year), so if you have USDA financing questions and are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are already in progress.Sebring Florida Highlands County USDA Loans


Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

(800)806-9836 Ext. 280

As a USDA approved lender, Metroplex Mortgage Services has expertise with this unique program, and we are able to walk both homebuyers and Realtors through the process step by step.

Don’t forget, here is the link to our USDA Blueprint for Success:


USDA Florida Credit Score Requirements

back to top