“TOWNS” in NC Due to Lose USDA RD Program

Currently, every County in NC is eligible for USDA Home Loan Financing.  The USDA RD Program (which covers home loans in Rural parts of NC) was originally  subject to change on December 1, 2014.  That was delayed until after the 2020 Census comes out.  If the Maps change, as they were announced to in change in 2014 – it will be significant.  The program is slated to “leave” many major towns and cities in NC.  According to a memo from USDA in September of 2012, the actual town BOUNDARY lines may be the important guide.

Meaning that in the future, the new requirements for a USDA home loan, could be decided based in NC by Town Limits – Town “Boundary Lines” could be used to determine USDA Home Loan Boundary Lines. Fortunately, the last update of the USDA Home Loan maps in NC,  in June of 2018 indicate that only areas AROUND some of these towns will be affected in 2020 – not the entire Town.

Currently, a town might have only a single street that sets the “eligible Boundary line,” the USDA Home Loan Map Changes taking effect,  will more likely be affecting neighborhoods near these towns.

In Holly Springs, NC (for instance) one side of  SR 1010 is eligible – properties on the Other side of SR 1010 are not.  In the most updated USDA Loans Holly Springs Maps, we find the biggest changes in a handful of neighborhoods that previously qualified for the program.

The NC Town and City boundary lines that will see changes, meaning areas around these towns will no longer be eligible for USDA Home Loans in 2020 include:

• The City of Archdale in Guilford / Randolph County
• The City of Belmont in Gaston
• The Town of Clayton in Johnston County
• The City of Eden in Rockingham County
• The Town of Fuquay – Varina in Wake County
• The Town of Harrisburg in Cabarrus County
• The City of Havelock in Craven County
• The City of Hendersonville in Cleveland / Gaston County
• The Town of Knightdale in Wake County
• The City of Lenoir in Caldwell County
• The Town of Lewisville in Forsyth County
• The City of Mebane in Alamance / Orange County
• The Town of Mooresville in Iredell County
• The City of Morgantown in Burke County
• The Town of Morrisville in Wake / Durham County
• The City of Mount Holly in Gaston County
• The City of Reidsville in Rockingham County
• The Town of Riverbend in Craven County
• The Town of Sedalia in Guilforn County
• The City of Shelby in Cleveland
• The Town of Spring Lake in Cumberland County
• The Town of Stallings in Union County
• The Town of Summerfield in Guilford County
• The Town of Tarboro in Edgecomb County
• The City of Thomasville in Davidson / Randolph County
• The Town of Wake Forest in Wake / Franklin
• The Town of Winterville in Pitt County

This is not the COMPLETE list of areas effected , only a list of Towns or Cities where it appears that areas AROUND the City Limits will be changed.  Prior to a USDA Home Loan Map Change in 2014 – it was believed that the ENTIRE townships listed above would no longer qualify for the USDA Home Loan Program.  For NOW – at least, USDA has rolled out a much “lighter” version of the USDA Loan Map Changes. 

With this change in 2020, we could see these Cities added back to the list, and the entire Towns could become “the Boundary Line.”  For Additional Areas, like  the Census Designated Place areas (CDP) of Wrightsboro – we don’t know the exact border that will be used to determine if the property is “In” or Out in 2020.  The same logic is true for Smithfield, and other traditionally rural towns in NC.  The area is referenced on the List, however it is not clear if the Town Limits will be the boundary lines in the 2020 listing…  (See the full details for affected areas for USDA Home Loan Map Changes )

There are 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 have questions about 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!