09/23/2026 - USDA Fiscal Year 2027 Conditional Commitment Notice

This notice will go into effect on October 1, 2026.

With the start of the new fiscal year on October 1, USDA anticipates having a temporary lapse in funding (approximately one week) for the Single-Family Housing Guaranteed Loan Program (SFHGLP).

During this time, Rural Development will issue Conditional Commitments (Form RD-3555-18/18E) subject to the availability of commitment authority for purchase and refinance transactions.

Guarantee fees will remain at 1.00% for the upfront guarantee fee and .35% for the annual fee on purchase and refinance transactions for fiscal year 2027.

The application processing workflow is as follows:

• Rural Development will continue to accept complete guaranteed loan applications for purchase and refinance loan transactions from approved lenders.
• Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible subject to the availability of commitment authority.
• Lenders may close loans as scheduled.
• When funds become available, Rural Development will obligate loans with a previously provided Conditional Commitment by issuing a new Conditional Commitment no longer subject to the availability of fundings.
• Once loans are obligated, Rural Development may process lenders’ Loan Note Guarantee requests when 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 obligates the loan and issue the Loan Note Guarantee.

Reference: For additional details, please refer to USDA’s official announcement.