The US Department of Agriculture, yes the same people who check our vegetables, offers a mortgage loan program designed to help our more rural communities grow. The program has no down payment requirement, and is suited for more conservative borrowers who don’t have a ton of Student Loan Debt, and who want to maximize their home purchase with very low mortgage payments. To qualify, USDA Home Loans in Apex and Holly Springs require that you buy a property that is within the “rural” USDA Loan Footprint. The USDA Home Loan Maps For Apex and Holly Springs NC currently used for qualifying a home for the program are scheduled to change.
USDA Home Loan Maps For Apex and Holly Springs NC
For more than 5 years, we have been told these maps are going to change, and large areas near Holly Springs and Apex, NC would not longer be eligible for USDA Home Loan Financing. The most recent USDA Home Loan NC maps were released on September 22, 2014 – and we are finally able to say what is going to be eligible for the program (at least for the next year).
Congress “kicked the Can” on deciding what parts of our state are “rural” and are continuing to use the 2010 census maps. We understand that in late 2020 they will be required to consider this new definition of Rural,and make the sweeping changes that have been discussed. Until that time, as Census data is released every 6 months or so, there are slight changes to streets and neighborhoods that can still use the program.
The “A” on the Map above represents where you will continue to see the majority of the changes for USDA Home Loan Maps For Apex . If you can “imagine” a line from Highway 1 (Claude E Pope Memorial, also known as the Beltline) over to Kildaire Farm Road… everything BELOW that line once qualified for USDA home loans. The image above is the Eligibility as of December 2014. Below you can see what it looks like in January of 2018. Again, the shaded areas do not qualify for the program – and it will continue to erode, as the population grows.
USDA Home Loans Holly Springs / USDA Loans Apex NC Maps
This is a different view of the Holly Springs, Apex, NC USDA Home Loan Eligibility Maps. The shaded areas are the areas that don’t qualify – so you can understand that downtown Apex, and most of Cary (for instance) are not rural areas and don’t qualify for USDA Home Loans… once you get outside of Apex, towards Jordan Lake – or you head from Holly Springs away from Hwy 55 and the Outer 540 Loop – you can see that those are could be subject to change with the next wave of Map changes, the majority of which we understand will happen at the end of 2020.
USDA Home Loans NC may well be the best mortgage program available for those who are able to meet the income restrictions, and are interested in living in a more rural area of NC. The program offers some of the best mortgage rates, and has very low monthly “PMI” Factors.”
Because of that, the payments – and therefore the ability to qualify for a slightly bigger home, makes the USDA Home Loan NC a very popular program.
USDA Loans NC and Student Loan Guidelines
Most mortgage programs require us to count some form of Student Loan debt in our qualifying Debt to Income ratios. USDA Home Loan NC underwriters are the most diligent, and require that we prove that the payment is actually a fixed rate mortgage payment.
Effective March 9, 2016 the USDA Student Loan Guidelines state that we must calculate qualifications as follows:
“Include the greater of 1% of the outstanding loan balance or the verified fixed payment reflected on the credit report. Income based repayment plans (IBR), graduated repayment plans, adjustable, interest only are all subject to change & the lender must use 1% of the outstanding loan balance as the payment amount.”
Many Loan Officers do not realize this is the case – because of that, borrowers are being told they qualify for a USDA Home Loan, when in fact they don’t. If your student loan payment is in deferment right this minute (and you are applying for a mortgage) we are required to count 1% of the balance.
A college degree, or Job training that provides some potential for increased earnings MIGHT also be used as a compensating factor for higher qualifying ratios. in North Carolina, the USDA Underwriters have always been one of the USDA compensating factors for a debt ratio waiver that helps first time home buyers.
Reserves: The term “reserves” refers to the amount of money left over after closing. For If you don’t meet the standard ratio requirements, this could be a factor. For a long time now, we’ve seen that the automated approvals in the USDA Automated Approval System show that reserves must be the recent 2 month average balance of liquid accounts. Gift funds are not included in the reserve total; if the borrower has overdraft or NSF’s on bank accounts, no reserves are allowed to be listed. (THIS IS A BIG CHANGE IN GUIDELINES)
If you are considering a home purchase in the Apex or Holly Springs area, we strongly suggest that you consider USDA for your Mortgage Financing options, even if you want to make a down payment! For more information about a specific address, please click here.
Because of the potential upcoming changes – we anticipate a “rush” for homes that qualify for USDA Home Loans. Don’t WAIT – it’s a great time to buy a home in Apex and Holly Springs. A substantial portion of our business is Government financing, and we have the best Investors, underwriters and the LOWEST RATES in the area! If you have questions about USDA Home Loans Holly Springs or the USDA Home Loan Maps For Apex and Holly Springs NC. Please call Steve and Eleanor Thorne, 919-649-5058 for more details!