NC Counties Loosing USDA Home Loan Financing

USDA Home Loan Map Changes In NC Coming

This state has grown Soooo much, that when the 2010 Census maps were drawn up, and analyzed, it showed that 21 Communities in NC was scheduled to lose the opportunity to get mortgage loans approved using the USDA Home Loan Program.  When are the USDA Home Loan Map Changes In NC going into effect? … starting September 30, 2013. 

Congress passed the Senate USDA Appropriations bill, S.2375 which included a grandfathering provision.  The provision is for places that have gained population and would otherwise become ineligible for USDA Home Loans.  This bill would keep them eligible through the end of June 1, 2013 – and while the Senate passed their “part” of the legislation, the House has NOT.

Because there’s been no “complete” decision by Congress, USDA Rural Development Single Family Housing  Announced that it will put the new maps in place on September 30, 2013.  Many areas in NC will loose eligibility for USDA Home Loan financing, when the updated Census Data is put into place.  The current proposed List includes:

  • Belmont

    NC Counties Loosing USDA Home Loan Financing

    NC Communities that can NOW get mortgages with the USDA Home Loan Program could LOOSE that option on June 1, 2013 with new guidelines for areas who have seen a Population Change!

  • Clayton
  • Eden
  • Fuquay-Varina
  • Hendersonville
  • Holly Springs
  • Hope Mills
  • Knightdale
  • Leland
  • Lenoir
  • Mebane
  • Morganton
  • Mount Holly
  • Murraysville
  • Newton
  • Piney Green
  • Reidsville
  • Smithfield
  • Summerfield
  • Tarboro
  • Wake Forest

The folks in these areas need to be aware of this coming change – because it will likely make it more difficult for some people to purchase homes there!

USDA offers 100%, no money down home loans designed for folks who have pretty good credit, good jobs, and want to live in more “rural” areas of NC.  I think it’s a great place – but frankly, I’ve never thought of Tarboro, or Belmont (for instance) as huge Metropolitan areas – so I was surprised!

View the State of North Carolina USDA Eligibility Map Changeswe put together a TON of information and maps from across the state you can view.

There are two things to remember when looking for information about this Map Change.  The Communities listed above would lose USDA “eligibility” because of the growth in their town, or area.  For many areas, this is THE mortgage program of choice, and it’s why certain subdivisions in Holly Springs and Wake Forest (for instance) have been so popular!  In other words these areas, if not grandfathered back, have 2010 Census numbers that kick them out of having USDA Loans.

The SECOND “tier” of communities that would lose USDA Home Loan eligibility are the towns and subdivisions that could be part of the new definition of Rural Under that “broader” definition change (that Congress has to tackle) almost one third of NC Loses eligibility for USDA Home loans!

We recently did a comparison of all of the No Money Down Home Loans in NC, and we still think USDA Home Loans are the best program available – for the folks who want to live in a Rural part of our state, and who qualify!

If you are looking for a USDA Home Loan in North Carolina, or if you have questions about USDA Home Loan Map Changes – call Steve and Eleanor Thorne!  919 649 5058 – we know the USDA Home Loan program requirements, and we can help you get pre-qualified to buy your dream home in NC!


  1. David says

    Eleanor this is a big set back for folks looking to use the USDA program in Clayton. How are they classifying it by within the city limits or mailing address?

  2. Eleanor says

    David – The Senate passed a bill that extends the program “footprint” for 12 months – so until Oct 1, 2013. But it is a HUGE deal for Clayton and Smithfield. Here’s some of the background that I found on it. But the important thing is to see that it’s mostly based upon Census, which as I understand it is “Town Boarders” – not mailing address? Here are the “Research Notes” about the USDA Home Loan Changes that are coming to North Carolina.

    The idea of changing the “description” of Rural by the USDA Home Loan Program is the part that is additionally “scary,” since it substantially changes USDA Eligibility in NC. Here’s some additional Research done on the proposed USDA home loan eligibility changes.

  3. Justin says

    Eleanor, I was told by my lender and by the builder that the location in Knightdale that was once USDA approved is not going to be ineligible come October 1, 2012 not 2013. Does this article still hold ground that these areas could be grandfathered after the October 1st deadline?

  4. Eleanor Thorne says

    Justin! We just talked to USDA today. It’s not the builder – it’s where the property is located. It looks like the maps could change on Oct 1 – but if they do – it will NOT go into effect (meaning you would still b able to buy) until after a 30 day notice is published. The Senate passed an appropriations bill that had language that delayed any change until next year. The House has 100 signatures to delay as well.

    This is a HUGE issues – it affects 1/3 of our state, and it’s not just housing – it’s business loans too. We are still taking loan applications, and I would tell you that if you can buy now, then do it… because eventually it will change.

  5. Amanda says

    Do you know what the latest is? I am reading conflicting information. I read that since the House did not “completely” pass the bill the new cut off date is March 27, 2013. In other places I am reading June or October. You seem to be very knowledgeable about this issue- any word?

  6. says

    The June date is what was in the Senate bill – the October date is the date it was initially suppose to go into effect last fall… unfortunately, unless the Administrator of the program makes a decision otherwise, or the Congress makes a change in law – the date of 3/27/13 stands. We’ve been sending messages to our Congress Members – and encourage you to do the same.

  7. says

    Note that the current date (assuming the 2013 Budget is signed by the President this week) for the USDA Map Changes is now September 30, 2013. I’ve tried to update the site to only show this date – if you find an error – leave me a comment on the post so that I can change it! THANKS!

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