USDA Rural housing announced that the 2013 proposed changes to eligible locations has once again been postponed. This is great news for homebuyers looking to take advantage of this no down payment loan program.
What Are USDA Loans?
The USDA Rural Development Loan Program, or USDA loans for short, are designed to make rural housing more affordable. USDA loan program eligibility depends upon applicant income and the purchase property location. The USDA Rural Housing program is for residential purchases and rate-and-term refinances only – no cash out refinancing. All USDA loans are 30-year fixed rate mortgages.
USDA Loans – No Down Payment
One of the most appealing features of USDA Rural Development loans is that you can finance a home with no down payment.
USDA Rural Development’s Eligible Areas Remain Unchanged
If you have been worried about the changes to eligible property locations, you will be happy to learn that the proposed changes to community eligibility for USDA Rural Development Housing Programs has been delayed. This change was scheduled to take affect October 1, 2013.
Barring further Congressional action, current eligible areas for USDA Rural Development’s Housing Programs will remain unchanged through January 15, 2014.
USDA Loan Eligibility
In order to utilize the USDA Rural Housing Program, your home must be located in a rural area. Although the term “rural” might not seem to apply to you – several suburbs and outlying communities of most major U.S. cities meet the USDA property location requirements. Check your property eligibility here: Rural Housing Property Eligibility. The proposed changes, referenced above, would have reduced the number of eligible communities. Due to the delay, many potential home buyers still have the opportunity to utilize the USDA loan program.
Since the program is designed to help low-income individuals or households purchase homes – the USDA Rural Development Program also has income limits. Check the income limits for your area here: USDA Rural Housing Income Limits.