SFH Guaranteed Origination
September 16, 2026
Fiscal Year 2027 Conditional Commitment Notice
With Fiscal Year (FY) 2027 approaching, please take a few minutes to review the Single-Family Housing Guaranteed Loan Program (SFHGLP) Conditional Commitment process.
FY 2027 begins October 1, 2026, and ends at the close of business on September 30, 2027.
Fee Structures:
For FY 2027, an upfront guarantee fee of 1.00 percent and an annual fee of .35 percent apply to both purchase and refinance transactions.
Issuance of Conditional Commitments:
At the beginning of each fiscal year, the guaranteed loan program lacks available funds for a short period of time – approximately one week. USDA anticipates this brief lapse in funding to continue for FY 2027. During this temporary lapse in funding, Rural Development - Rural Housing Service (RHS) will issue Conditional Commitments (Form RD 3555-18/18E) “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 guaranteed loan applications for purchase and refinance loan transactions from approved lenders.
- Rural Development will process, approve, and issue Conditional Commitments for eligible applications “subject to the availability of commitment authority”.
- Lenders may close loans as scheduled.
- When funds become available, Rural Development will obligate loans which originally received a Conditional Commitment subject to the availability of funding and will issue new Conditional Commitments.
- Once loans are obligated, the Agency will process lenders’ requests for Loan Note Guarantee after verifying the loan closing and confirming the lender has satisfied all Conditional Commitment requirements.
- Lenders assume all loss-default risk for the loan until Rural Development obligates the loan and issues the Loan Note Guarantee.
Thank you for your participation in the USDA Single Family Housing Guaranteed Program. We look forward to serving you in FY 2027!
Please direct questions regarding this announcement to sfhgld.program@usda.gov or (833) 314-0168.
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