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!