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Changes to the USDA Home Loan Location Policy

Wednesday, March 20, 2013 - Article by: DarrenCopeland - Leader One Finanacial - Message

Have you ever considered the USDA home loan program? It's one of the few 100% financing options that are available to any home buyer!

And now on to the big news about USDA Loan Eligibility Changes; Recently news has appeared in the email inboxes of mortgage bankers and loan officers everywhere, the USDA has changed some of the location eligibility data based on the 2010 census, these changes don' t take effect immediately but the changes are coming on March 27, 2013. This means that some of the towns, villages and other rural areas are being 're-zoned' as no longer rural but part of a Metropolitan Statistical Area (aka MSA.) We can help you determine whether you're eligible or you can visit the USDA site and enter the address you're looking at buying and see if it's in the area.

Some of the biggest changes effect areas around the Kansas City metro region. Grain Valley, Excelsior Springs, Harrisonville and Sedalia Missouri are NO LONGER a part of the USDA eligible areas as of March 27, 2013. You can contact your mortgage broker/banker to see if other areas in the United States are on the list. So what does this all mean? Basically, it means that the population in these areas has grown enough to no longer be considered rural, that's why it is so important for you to know whether the area you're going to be buying in falls with the location guidelines.

However, the USDA Loan Eligibility requirements for location are just one of the few requirements that you'll have to meet to get a USDA home loan, some of the other requirements are

you must fall within the 'qualifying income requirements' you can figure your qualifying income at the UDSA's SFH Section 502 Eligibility Check Worsheet or you can call Darren Copeland NMLS #164545 at (816) 268-4025.

be a US Citizen, a US Non Citizen National or have a qualified Alien status
be at least 18
not own another house in the local area
occupy the home as your primary residence
be unable to get conventional loan that requires a 20% down payment

If you have any more questions you can call us at (816) 268-4025 or email

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