Janna Rankin Scharf, PMN, GRI, SFR, CLHMS - Coeur d'Alene, Idaho Homes For Sale
It was just confirmed today that as of October 1, 2012, property within the city limits of Post Falls, Idaho will no longer be eligible for USDA Rural Development direct or guaranteed mortgages. We are awaiting formal boundary lines and I will update you when I receive that information.
These USDA loans have been a significent percent of our local market in rural Kootenai County. With the exception of Coeur d'Alene and Hayden, all of Kootenai County has qualified. Qualification is based on population. Now with the growth in Post Falls, property in that town will be excluded. In order to close before October 1st, buyers will need to be under contract by early August at the latest.
USDA offers loan programs with attractive low and no down payment options for entry level buyers of modest homes. Usually more easily qualified for, affordable and attractive to buyers than FHA guaranteed loans, they have been a large share of mortgages in Post Falls in recent years.
What does this mean? This will certainly have an impact on certain buyers' ability to purchase a home in Post Falls. Buyers who need the USDA RD financing program in order to qualify have looked to Post Falls because Coeur d'Alene and Hayden weren't available. Now that Post Falls will also be excluded, I predict an uptic of sales in Rathdrum beginning this fall.
By the end of the year we are going to start seeing closed sales statistics down in Post Falls while they start moving up in Rathdrum.