As of October 1st 2013 the USDA eligible housing map will change! If your loan is not approved at USDA before that date there is a good chance it will not fund!
If you are a Real Estate Professional and you have listings that are currently in a USDA eligible area you may wake up on October 1st and realize that they no longer qualify for USDA 100% financing.
USDA – yes, the same people that inspect your meat, has loan programs to help people in “rural” areas purchase homes with 100% financing and low interest rates. There are two different programs. One is their direct program where they take your application, process the loan and fund it. This program requires the borrower to qualify with very low income. The second program guarantees the loan. Like FHA, USDA provides insurance to the lender against consumer default. It also provides 100% financing and low interest rate, but it is originated by a loan officer at Victory Funding or another broker or bank, is processed by that entity and sent to USDA for approval once the loan is approved by the lender. There are income restrictions and the property must be located in a USDA eligible rural area. Every 10 years USDA is required to re-draw their lines using the census data from that decade.
For the Capital District in New York, the home of Victory Funding and Living Well Realty in Malta, NY, the changes are quite devastating. Since we have experienced significant growth with the addition of Global Foundries and other tech businesses, many areas are no longer eligible. The areas that were considered rural that will no longer qualify include Malta, Luther Forest, Round Lake, most of Ballston Spa, the rest of Saratoga Springs, Mechanicville, Wilton, Burnt Hills, Voorheesville, Slingerlands, Bethlehem and many many other communities around Albany, Troy and Schenectady New York.
Some communities that are not affected are Charlton, Stillwater, Schuylerville, Duanesburg, Schodack and areas that are still very rural.
The bottom line is that this great loan program has helped the housing recovery and is now changing to exclude many would-be buyers. Contact your congressman today and tell them you want this program to be left alone for now so the housing recovery can continue to take hold.
At Victory Funding and Living Well Realty we are committed to making dreams come true and this program is vital to that goal.
