Wednesday, May 7, 2014

USDA Rural Loan Service Area Definition Remains an Ongoing Battle

In the umpteenth release from USDA Rural Development regarding eligible areas read on... 

New Rural Area Maps for USDA Rural Housing Programs!

The rural area definition was revised with the passing of the Agricultural Act of 2014, H.R. 2642 (Farm Bill) by modifying the second sentence of section 520 of the Housing Act of 1949 (42 U.S.C. 1490).  The rural area definition is amended as follows:

(1) by striking "1990 or 2000 decennial census shall continue to be so classified until the receipt of data from the decennial census in the year 2010" and inserting "1990, 2000, or 2010 decennial census, and any area deemed to be a 'rural area' for purposes of this title under any other provision of law at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020;" and
(2) by striking "not in excess of 25,000" and inserting "not in excess of 35,000."

Additionally, section 737 of the Consolidated Appropriations Act, 2014 (H.R. 3547) authorized any area that was eligible as of September 30, 2013, to remain eligible until September 30, 2014. 

As a result of the legislation, Rural Development revised the eligible area maps, based on the Farm Bill, on May 6, 2014.  At this time, only areas that could be transitioned from “ineligible” to “eligible” are reflected in the map changes.  The maps are available on the Eligibility website (http://eligibility.sc.egov.usda.gov).  Select “Single Family Housing” under the Property Eligibility menu.

Stakeholders are advised that additional changes to eligible rural areas for USDA Rural Housing Programs as outlined in H.R.933, Consolidated and Further Continuing Appropriations Act of 2013 and the 2010 Census will take effect on October 1, 2014, barring further Congressional action.  A preview of the “Future Eligible Areas” will be available on the USDA Income and Property Eligibility Site later this summer. 

The USDA Rural loan remains a popular loan program in the outlying areas in the Portland Metro Real Estate Market. The loss of a program that allows for low-moderate income families to finance 100% would not go unnoticed. See the link below for more insight... 

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

Additional Resources

OregonMortgageConneXion - USDA