USDA Update: Important Info On The New USDA Guidelines
New USDA Guidelines Update!!!
Did you know that the USDA Guideline updates scheduled for September 1st (coincidentally Labor Day!) are postponed until December 1st 2014?
Now that we have a few more months to prepare, I wanted to make sure that everyone was up to speed on a few key upcoming changes that will benefit homebuyers and allow more potential properties to be eligible for USDA 100% financing.
A couple weeks back, I sent out an email that went into the details of the new USDA Area Eligibility Maps. As a reminder, this map will become effective on all applications received by USDA after October 1. Please note, the loan does not have to close by October 1st, USDA just needs to be in successful receipt of the loan file prior to 10/1/14.
However, just recently I have heard news that certain areas impacted may be under reconsideration to retain their USDA eligible area status. As of today, we do not have any more specifics to share, but will provide the details as they become available.
For your convenience I have included a previous post which provides instruction on how to search for eligible areas.
Now with regards to the actual guideline changes that are part of the new 7 CFR 3555 which will be effective 12/1/14 please note the following:
First off, all of us will be glad to hear that the previous restrictions regarding in-ground pools is being removed! Once these guidelines are effective, properties with in-ground pool homes will not be held to additional USDA financing limitations. This is really great news!
A second main highlight change is that the 30% limitation on the land to total property value is being removed as well, this will provide the potential for more flexibility with properties of higher acreage.
Remember, these are only a few of the changes that will be taking place, so make sure you keep an eye out for any future videos on this important topic!
