USDA loans are popular loan program because they do not require a down payment, a great way for first time home buyers to be able to afford a home of their own. USDA loans require at a minimum that:
- The homebuyer meet annual income limits. USDA Loan Income Limits for Raleigh NC for a family of 1 to 4 persons is $91,850. For a family with more than 4 members in the Household the USDA Income Limit for Raleigh is currently $121,250. This is total combined income from everyone living in the home including social security income/pension income.
- The property be in a USDA eligible area which is usually considered a rural area. With the explosion of growth in the Raleigh Durham area many areas that were once considered rural will no longer meet USDA requirements
- A minimum of a 580 credit score
- No late payments in the last 12 months.
USDA has a map that show the areas that are eligible and ineligible. However, thanks to the 2010 US Census Maps for Raleigh NC and surrounding areas will be changing soon. According to the USDA Eligibility site; “Property eligibility for housing programs will change to 2010 Census data on 12/01/14, barring Congressional Action to extend current eligibility.”
Not so fast. The Agricultural Act of 2014, page 213 states the current maps will stay in place until after the census of 2020. The bill passed the House and Senate so many think this is the final ruling. So which one is it? 12/1/2014 or 2020?
If you visit the USDA Rural Development offices, their information states “Barring Congressional action, USDA will begin using the 2010 Census data to determine eligible rural areas for Rural Development housing programs on December 1, 2014.” There’s one more twist to contend with. On September 22, 2014 USDA changed the maps. This update confirms which neighborhoods go into effect December 1, 2014.
Based on the new USDA eligibility maps the following towns will no longer be eligible for USDA financing December 1, 2014:
- Fuquay Varina
- Holly Springs
- Wake Forest
Below is the link to the current USDA Loan Eligibility Map for the Raleigh NC area. The yellow areas are not USDA eligible.