USDA Rural Development Single Family Housing announced late yesterday that they are going to delay implementing any USDA Home Loan Map Changes until late September, 2013.
USDA No Money Down Loans really have two parts to the qualifying process. The property must be within the USDA Loan “Footprint,” and the household income can not be more than the limits for that County.
In an effort to update the USDA “Boundaries” (footprint) to match the new census data, over 20 communities in North Carolina grew to the point that they no longer meet the current definition of Rural. In addition to that, some areas might be “re-classified” making almost one third of North Carolina ineligible for USDA Home Loans.
USDA Loan requirements are fairly straight forward. Credit scores need to be above 600 (in some cases you will need a 640), you must meet the Income Requirements for your area, and if you have Student Loans, you need to know how USDA underwriters will treat the type of Student Loan you have in calculating your ratios.
There area three basic UDSA Home Loan requirements for getting a Home Loan in NC.
- The home must be located within the USDA Home Loan footprint (obviously, these boundaries could be changing in NC based on a new definition of “rural” mandated by Congress).
- Each borrower needs at least 2 credit scores of at least 640. There are exceptions, and if you qualify for a NC Housing Finance Agency loan, you might qualify with scores as low as 620. In general, the underwriters for USDA Home Loans in NC are looking for 12 months of Clean Credit.
- You must be under the Maximum Income Requirements for the County you are purchasing a home in to qualify for this No Money Down Home Loan Program.
If you are considering a new home purchase in North Carolina, or have questions about USDA Home Loan Map Changes,. please call Steve and Eleanor Thorne 919 649 5057. We do tons of USDA Home Loans in NC, and we’d love to help you before these changes go into place!