One of the best and one of the last 100% loan programs in our area, the USDA Rural Housing program has shifted it's boundaries to reflect population changes in the Triad. Since the most recent census, those of us in the real estate industry knew that the maps would be redrawn, as areas, that historically have been considered rural, moved into suburban or urban categories. However, for the past several years, we have been out of the line of sight and enjoyed using this program in areas such as Kernersville, Reidsville and Eden. Per the most recent maps, some of those areas will no longer be eligible.
That leaves a definite void for buyers who have had the option to use this 100% product. It appears that one of the last traditional 100% loans will be the VA loan. However, you must be a veteran which again limits buyers' options. There are several credit unions that offer a 100% product but it can come in the form of an adjustable rate product OR have other stipulation that was not as attractive as the USDA loan.
This could be a sign that the overall housing market is continuing to improve or at least appears to be in Congress' eyes. As a Realtor who uses this product quite a bit in the Kernersville area, I definitely see it having an impact on buyer's options and sellers ability to sell to a larger market of buyers.
It appeared that the new maps would take effect October 1 and that buyers in the pipeline before that point would be grandfathered in. However, a recent development shows that December 1 is the new deadline meaning that IF you are considering a purchase in the Kernersville area AND would like to use and are eligible for the 100% USDA program, you need to act quickly. As always, if you do not have a relationship with a Realtor, please call or email me and I will be happy to assist you in finding suitable property and working you through the process with a reputable lender.
Brooke
No comments:
Post a Comment