Rural Housing Service Amends Combination Construction to Permanent Loan Program (“Single Close Loans”)

In Client and Friends Memos by BMG Memorandum

By a final rule published in the Federal Register (84 FR 35003), the Rural Housing Service (RHS) amends its Single Family Housing Guaranteed Loan Program (SFHGLP) for Combination Construction to Permanent Loans (single close loans) effective October 1, 2019. The final rule is not retroactive – i.e., it will not affect agreements entered into prior to the final rule’s effective date of October 1, 2019.

The final rule amends the RHS regulations in 7 CFR Part 3555 to ease the financial costs of interim construction financing for non-depository lenders (defined as warehouse lenders in the final rule)

 

Full Memorandum