Eligible areas will not change until at least October 1, 2014!
When the 2010 Census maps were drawn up, and analyzed, many communities across the US were scheduled to lose their “rural” designation based on updating the USDA eligibility map.
I’ve personally spoken to a number of first time home buyers who have been told they have to go with an FHA Mortgage due to the uncertainty of what areas will remain eligible for the USDA Mortgage program.
They’ve been told things like the area isn’t going to qualify after October 1st, 2012 or my favorite lie, the interest rate on a USDA Mortgage is going to be higher than an FHA Mortgage. This is absolutely false. Even if it were true, you would still end up with a lower monthly mortgage payment because the monthly mortgage insurance on a USDA Mortgage is substantially cheaper than an FHA Mortgage.
I have great news! I just received the following email.
January 24th, 2014
Census Eligibility Maps
Barring Congressional action, USDA will begin using 2010 Census data to determine eligible rural areas for Rural Development housing programs on October 1, 2014. Changes to eligible areas can be viewed by selecting the applicable program listed under “Future Eligible Areas” at http://eligibility.sc.egov.usda.gov.
NOTE: Complete applications received prior to October 1, 2014, will continue to use the existing eligible rural area definitions based on 2000 Census data.
So this means the eligible areas will not change until at least October 1, 2014!
If your lender or real estate agent is telling you that you can not use a no money down USDA Mortgage to buy your home because of the eligibility concerns, it’s time to find a new lender. Don’t let your lender or agent pressure you into an FHA Mortgage or some other program that doesn’t benefit you just so they can meet a closing date. A USDA Mortgage is going to give you a lower monthly payment and a low 30 year fixed rate so take advantage of it while you can.
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