On October 1st, 2016,the USDA Rural Development Guaranteed Home Loan Program is making a very drastic cut to fees for Rural Housing Mortgage Loans in Kentucky

SFH Guaranteed Origination






Fiscal Year 2017 Conditional Commitment Notice

With the start of fiscal year 2017 (FY17) just around the corner, please take a few minutes for a timely review of the Single Family Housing Guaranteed Loan Program (SFHGLP) conditional commitment process. We hope you find this information helpful. 

Issuance of Conditional Commitments: At the beginning of each fiscal year, funding for the SFHGLP is not available for a short period of time – approximately two weeks.  This will not change in FY 2017, which starts October 1, 2016.  During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions

The application processing workflow is as follows:
  • Rural Development will continue to accept complete SFHGLP applications for purchase and refinance loan transactions from lenders;
  • Rural Development will process, approve, and issue Conditional Commitments (Form RD 3555-18) for those applications that are eligible “subject to the availability of commitment authority;” 
  • An upfront guarantee fee of 1.00 percent and an annual fee of 0.35 percent will apply to both purchase and refinance transactions in FY 2017.
  • Lenders may then close loans as scheduled;
  • When funds become available, Rural Development will obligate funds for Conditional Commitments issued for loans subject to the availability of commitment authority;
  • Once loans are obligated, Rural Development will process lenders’ Loan Note Guarantee requests as soon as the loan closing is verified and all conditions of the Conditional Commitment are satisfied;
  • Lenders assume all loss default risk for the loan until Rural Development is able to obligate it and the Loan Note Guarantee is issued.


Thank you for your participation in the USDA Single Family Housing Guaranteed Program.  We look forward to serving you in FY17!  

. New upfront fee: 1.00% Current upfront fee: 2.75% *monthly fee will also drop New annual fee: 0.35% Current annual fee: 0.50%







joel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.