7 CFR § 1980.321(b) places the following restrictions on the term of Rural Housing loans:
“The term for final maturity shall be not less than 30 years from the date of the note and not more than 30 years form the date of the first scheduled payment.”
Currently, we have error messages in place to inform clients whether the loan term is less than 357 months or more than 360 months. However, in order to more accurately prevent the loan term from being less than 30 years from the note date (the closing date), we will display the following error message when the Maturity Date (Field 15368) is earlier than the Closing Date Plus 30 Years (Field 52732):
“Per 7 CFR § 1980.321(b), RD/USDA loans must have fully amortizing fixed monthly payments. The maturity date cannot be less than 30 years from the date of the note, and the loan term cannot be longer than 30 years.”
This error will begin appearing on March 18, 2014. If you have any questions or concerns about this warning, please contact Client Support at 1.800.497.3584.
March 11, 2014
*Updated March 24 to reflect that this data integrity check is an error and not a warning.