There’s just 10 days remaining before the boundaries determining eligible properties for USDA financing are set to change unless Congress takes action. I shared with you USDA had posted the “future” boundaries on their website back in April.
The National Association of Realtors (NAR) has recently sent letters to both the House and Senate Appropriation Committee Chairs urging them to include language in FY 2014 Continuing Resolution to keep these rural areas eligible for USDA mortgage loans.
From Gary Thomas, 2013 President of NAR’s letter:
“…there is language in both the FY 2014 House and Senate Agriculture Appropriation bills extending the definition of rural housing used by the Rural Housing Service (RHS). RHS programs such as Section 502, 515, and 538 loan programs provide direct and guaranteed loans for both single and multifamily housing. Across rural America, these programs provide both rental and homeownership housing opportunities for rural families. As our economic and housing recovery continues, access to these programs is crucial. Since its inception the Section 502 direct loan program alone has helped more than 2.1 rural families purchase a home. Without extending the definition, this program will be unavailable to more than 900 communities nationwide.
It appears unlikely that the FY 2014 Appropriations bills will become law before the September 30th expiration of the current definition. We urge you to include language addressing this issue in the FY 2014 Continuing Resolution so that rural Americans will continue to have access to housing opportunities and financing appropriate to their needs.”
USDA mortgages allow for zero down payment in areas that are designated as rural. In order to determine if a property is eligible, you can run the address on USDA’s site. It actually does boil down to the address of the home. It’s not unusual to have one side of a street in Snoqualamie to be eligible and across the street, homes are not eligible for USDA zero down mortgages.
Income limits apply based on the size of the household. Mortgage rates are surprisingly competitive considering that it’s 100% financing.
I’m happy to help you with a USDA zero down mortgage (or any mortgage) for your home located anywhere in Washington state. Click here if you would like me to provide you with a mortgage rate quote.