Thursday, August 9, 2012

USDA Rural Shrinks Eligible Areas and Increases Fees.

Update: Changes to the housing eligible areas map based on 2010 Census data scheduled to take effect 1/15/14, have been postponed to 10/1/14 by passage of the Consolidated Appropriations Act, 2014. View "Future Eligible Areas." Complete applications received before October 1, 2014, will continue to use rural area definitions based on 2000 Census data. -1/24/14

Update: "USDA has recently announced that the transition to using data from the 2010 Decennial Census will be implemented on March 27, 2013. Until that time, and unless specifically directed otherwise, Rural Development programs will continue to use the population data from the 2000 Decennial Census for program purposes." 
USDA Rural Development - - 10/05/12

Effective October 1, 2012 the areas served by the popular USDA Rural Development home loan program which enables low to moderate income earners 100% financing will reduce its eligible property areas. The change comes mostly due to higher populations in areas based on 2010 US Census data but also due to the expiration of Grandfather Clauses by RHS or because its county has been designated as part of an MSA (Metropolitan Statistical Area). Preliminary areas in Oregon and Washington slated to lose eligibility are:

 Cities                                                                             County                      Population
*the above is a draft and is subject to change

Although this serves as a blow to those areas previously served the USDA Rural program will continue to be a smart financing option for those looking to purchase a new home in the outlying communities. To see if the USDA Rural is available your your desired location follow this link to check property eligibility.

Also effective October 1st the USDA Rural Annual Fee will increase from .30% to .40% on all new loans originated and on refinance transactions the upfront Guarantee Fee will increase from 1.5% to 2%. The increases are necessary to ensure sustainability within the popular loan program.

To apply for this or any other loan program contact me today!

1 comment:

  1. Action Alert
    August 7, 2012
    Dear Rural Advocates,
    My, have we been busy! This past week, we've contacted over 230 Congressional offices about the "rural" definition issue. So far, 8 Representatives have signed on Rep. Fortenberry's letter to House Leadership, asking them to address the "rural" definition issue in this year's Continuing Resolution (CR) that Congress will likely vote on in September. Those that have already signed on include: Reps. Boustany (LA), Capito (WV), Costa (CA), Filner (CA), Hinojosa (TX), Langevin (RI), LoBiondo (NJ), Michaud (ME), and Ryan (OH)!
    But our hard work isn't over yet. Please call your Representatives and ask them to sign onto Rep. Fortenberry's letter! The deadline is Thursday, August 16th!
    Not sure who to call? Check out NRHC's List of Congressional Targets.
    Be sure to share these resources with your Representatives:
    • Rep. Fortenberry's Draft Letter to House Leadership;
    • Rep. Fortenberry's Proposed Legislative Language;
    • USDA's List of Impacted Communities; and
    • A Letter--signed by the National Rural Housing Coalition, the National Association of REALTORS, the National Association of Home Builders, and the Mortgage Bankers Association.
    And, remember to tell them that:
    • Without Congressional action, more than 900 communities--including those in their district--will lose their eligibility for USDA Rural Housing programs.
    • The CR is our best opportunity to address these issues before the October 1 deadline. While Rep. Fortenberry plans to offer an amendment to the FY13 Agriculture Appropriations bill, it won't get to the floor before the October 1 deadline.
    • If the House does not enact a solution to the "rural" definition issue, USDA will move forward with these changes on October 1st. There is a strong indication that USDA will not delay implementation of the 2010 Census, unless there is a clear indication that both Houses of Congress intend to act to modify or delay current law. The Senate already has a provision in their appropriations bill. Now, we need the House to act. At this moment, the best opportunity appears to be the CR.
    • Rep. Fortenberry's letter has strong bipartisan support with cosigners equally divided between the two political parties.
    Thank you for your advocacy!
    Sarah Mickelson
    Follow us on Twitter @RuralCoalition and Facebook!
    National Rural Housing Coalition
    phone: 202-393-5229