Are You Prepared For The Upcoming USDA Guideline Changes On 12/1/14?
USDA Rural Home loans are unique with both the benefits they offer and their qualifying guidelines. Effective December 1st, 2014 the USDA program will experience a massive overhaul with many changes set to occur.
Today’s video tip will help you start to prepare for the upcoming USDA guideline changes and explain how it can benefit both Homebuyers and Realtors.
Before we get started, don’t forget to download our USDA blueprint for success with the link below. This free guide is designed to break down the process step by step and is a great educational resource for both Realtors and homebuyers alike.
So, are you prepared for the upcoming USDA guideline changes on 12/1/14?
Per USDA Rural Development, on the new 7 CFR 3555 handbook for Guaranteed Housing Loans:
“The rule represents a framework which will update, reorganize, and simplify the Single Family Housing Guaranteed Loan Program (SFHGLP). It enhances program effectiveness bystreamlining processes, reducing regulations, improving customer service, and strengthening the Agency’s ability to manage the program.”
Here are key highlights from the proposed USDA guideline changes:
- Removal of the inground pool restriction. This is a big one, currently USDA loans will not include in their loan amount any value given to the pool. This has been a cause of great frustration in the past, and thankfully once effective, USDA loans WILL be able to finance homes with in-ground swimming pools.
- Removal of the previous land to value limitation of 30%. Under current guidelines, if the site or land value exceeded 30 percent of the total appraised value of the property, additional criteria was required to ensure the property would be eligible.
- Now, the specific 30% limitation requirement is removed. Provided the site size is typical for the area, this will have the potential to increase USDA financing availability on properties with increased acreage.
These are just 2 of the many USDA home loan qualifying changes which are coming about in the new CFR 3555 effective 12/1/14. In addition, there are going to be many more positive guideline changes and clarifications, which will assist more homebuyers in qualifying for a USDA loan.