There are currently two bills being considered by Congress that would change the “definition” of Rural. This is important, because if you want to live in a part of North Carolina that is “right outside” of a metro area, like Charlotte, Raleigh or Greensboro, you could use the opportunity to do so with a USDA Home Loan in NC.
In NC, USDA Home Loans in NC are one of the most POPULAR mortgage programs because it’s a no money down, 100% mortgage loan… and it has the lowest closing costs and PMI of any other program available.
The current maps are based on 1990 Census data (for the most part) and since our state has seen tremendous growth – it will have a major impact on where you can purchase a home in NC using USDA. If the Maps Change on September 30, 2013 anyone interested in buying a house in Belmont, Holly Springs, Clayton, Wake Forest would need to make a downpayment (unless you’re a Vet of course!). Because of that, the USDA Map Changes are being closely watched by first time homebuyers in NC!
The Senate Bill S. 3541 is the BEST option for those who are hoping to see very little change.
The legislation would change the census data and population requirements for determining rural areas. Under current law, rural areas are to be classified based on 1990 or 2000 census population data until 2010 census data are received. S. 3541 would update and expand the classification requirements. One change would allow rural areas to be classified based on 1990, 2000 or 2010 census data. Another change would allow an area to be classified as rural if it was deemed to be a rural area “any time during the period of beginning January 1, 2000, and ending December 31, 2010,” and would require that these areas continue to be considered rural until the receipt of 2020 census data.
The legislation would also amend current requirements that allow areas with populations over 10,000 but under 25,000 to be considered to be rural, if they are “rural in character.” The measure would increase the upper population from 25,000 to 35,000.
Because of that, and the fact that population limits for USDA’s rural housing programs are not the same as they are for its business or utilities programs, it’s not surprising that the General Accounting office in Washington suggests that there needs to be a more “consistent” definition of Rural.
The other bill that would tackle the New USDA Definition of Rural and the proposed Map Changes for USDA Home Loans in NC is H.R. 858, the Rural Housing Preservation Act. This Act carries a provision for any area that has a population of between 10,000 and 25,000, is rural in character, and has a serious lack of mortgage credit for lower and moderate-income families. As you can imagine, cities that are over the 20,000 limit set to go into place on September of 2013 with USDA map changes, are hoping one of these Rural Housing Bills pass!
Rep. Juan Vargas (CA-51) proudly cosponsored H.R. 858, the “Rural Housing Preservation Act”, introduced by Rep. Fortenberry (NE-1), which preserves the definition of “rural” until 2020 Census data is available, ensuring that over 900 rural communities in metro areas, like Imperial and Brawley, remain eligible for critical U.S. Department of Agriculture (USDA) Rural Development funding.
“Rural communities often struggle with affordable housing and it is imperative that Congress not create barriers to funding,” said Rep. Vargas. The “Rural Housing Act”, which is supported by both Democrats and Republicans, will help protect vulnerable communities and keep them eligible to apply for much needed federal housing funds.”
Again, the issue is that you must purchase a home within the USDA “footprint” as part of qualifying for the program. The 2010 Census made numerous communities and towns in NC ineligible based upon the new USDA Home Loan Map Change guidelines that are to take place September 30, 2013. Cities like The City of Mebane in Alamance in Orange County,The Town of Mooresville in Iredell County, and The Town of Morrisville in Wake and Durham County will not be eligible for USDA Rural Development programs.
Our Suggestion? If you want to buy a house and you want to use this program – start looking! If you have credit questions, you might want to check this area out… it answers MOST situations we’ve seen!
If you have questions about USDA or any other no money down programs available in NC, please call Steve and Eleanor Thorne 919 649 5058 – we do many no money down loans, and offer today’s best rate! Connect with us on Facebook or G+ for updates!