Friday, January 30, 2015

The new maps are effective next week... be sure to refer to the property eligibility link to ensure your potential address falls into the USDA Rural boundary. The USDA Rural Loan is a popular loan product geared for low to moderate income households to purchase outlying properties with little to no money down. See additional links at the bottom of the page for more information on this mortgage product.

USDA Bulletin below... 

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January 29, 2015

Reminder:  Amended Eligibility Maps Become Effective February 2, 1015

This is a reminder that the new eligibility maps become effective on February 2, 2015 as stated on the ListServ dated December 22, 2014 and shown below in full context.

On December 16, 2014, President Barack Obama signed into law H.R. 83, the Consolidated and Further Continuing Appropriations Act, 2015 (Act), which provides fiscal year 2015 full-year appropriations through September 30, 2015, for all agencies except the Department of Homeland Security.  With the signing of this Act, Rural Development will implement the eligibility maps in accordance with the Agricultural Act of 2014, Pub. L. 113-79 (“Farm Bill”) on February 2, 2015 with the following exceptions: 
  • Because of the continuing re-examination of the “rural in character” policy, RD will continue its current policy regarding “rural in character” for the purposes of determining eligible rural areas.

  • The Act further provides that applicants in communities that have a current rural area waiver under section 541 of the Housing Act of 1949 (42 U.S.C. 1490q) shall be treated as living in a rural area for purposes of section 502 guaranteed loans.  This means that the area of Tuscaloosa, Alabama will continue to be considered rural through September 30, 2015 for 502 guaranteed loans, even if their disaster waiver expires during the year.    
While the reclassifications will largely involve areas going from rural to non-rural, areas that should have been made eligible during Phase 1 on May 6, 2014, but were missed will now receive the proper classification. 

Thus, the ineligible area maps based on the above classifications will be effective on February 2, 2015.  The changes will be those already published on the “Future Eligible Areas” maps posted on the Eligibility Websitehttp://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
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Keep in mind there are other low down financing options such as the VA Loan for qualified Veterans, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!

Additional Resources: