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Change in USDA Income Limits Finally in Place

By
Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

The USDA Single Family Housing Guaranteed Program (long name) or SFHGP (short name), undergoes a change on Monday. This has been some time in the works but is finally firm. The maximum income limits to qualify for the program has changed from individual family member stepped program from 1 through 8 to a 1-4 and 5-8 family basis. This is the Rural Guaranteed program that provides 100% financing to people that income qualify for purchases outside of the urban growth boundaries of most metropolitan areas. In Lane County, that means almost anywhere outside of Eugene/Springfield.

The income limits, as of Monday, for Lane County are: $70,750 for a family up to 4 and $93,400 for a family of 5-8. 8% of the 4 person limit is added for each household member over 8. Additionally, all income for all members of the household is counted when determining the household income. There are some adjustments available and individual income calculations can be done here. To find out if a particular property is in or out of the urban growth boundary, you can check it here.

This map shows the area of Lane County (dark shading) that is not eligible for the program.

Please note: Existing manufactured homes are not eligible for this program. It is possible, but very difficult to place a new manufactured home on a property as part of this program. Mostly, the USDA program works most efficiently with a site built or "stick" built home.

One of the best aspects of this program is that it offers 100% financing (no money down) and no mortgage insurance. That makes homes a lot more affordable for those that don't have a lot of ready cash but can afford to make their house payment every month. Credit requirements are also quite liberal while rates are very competitive.

So, where can you purchase a home that qualifies for the USDA program? How about Creswell, Cottage Grove, Veneta, Junction City, Oakridge, Westfir, Swiss Home, Florence, Harrisburg, Halsey, and even some Springfield and Eugene addresses? The property currently listed at 8440 Thurston Rd, Springfield, comes back as eligible for this program. You can check out rural property addresses here. If you want more information about this program, please call or e-mail me.

Comments(11)

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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Fred - We were given the heads up on this for our area about a week and a half ago.  This product is getting more and more exposure, which I believe to be a good thing.  Also, between normal disbursement and the stimulus, the chances of running out of money in 2009 is slim.

Apr 17, 2009 07:40 AM
Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru

Fred, great information about the changes. It is great that you are putting this forth now that the changes are in place. So many people try to blog about the changes coming down the line and the consumers tend to see that as a cry for business NOW as oppose to providing the information.

Apr 17, 2009 08:12 AM
Tim Bradford
Cleveland, OH
NMLS 250013

Fred,   do you have a link to the federal register to document this change?

Apr 17, 2009 10:10 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Good to c you back Fred!

Apr 17, 2009 12:08 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Thanks for the information, I do have one property that qualifies for this program, but finding a mortgage broker that understands it is the hard part. Give me a call on Tuesday and I would like to talk about putting your information on the flyers, if that is alright with you.

 

Apr 17, 2009 07:13 PM
Gail Szeluga & JoAnna Siminerio
Coldwell Banker Realty - Manalapan/Marlboro - Manalapan, NJ
Fostering Community Spirit Through Real Estate

Good information! 

People like you (giving me this kind of information) make me look better!

Apr 18, 2009 01:17 AM
Gerry Suarez Jr.
New American Funding NMLS 6606 - Orlando, FL
FL Mortgage Guru

Hey stranger, glad to see you posting here again!

and thanks for helping get the word out on the change. We all have been waiting for this for some time. As I blogged earlier, don't take this change lightly. When I researched it last year I discovered every FHA deal I had done in a 9 month period of time would have qualified under RD with these changes. This will go far to further reduce the costs of homeownership.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Apr 18, 2009 02:44 AM
Bo Hussung
Bell Title /Triserv LLC - Nashvle, TN

Fred, I am impressed that you are quickly establishing yourself as the expert in specialty lending in not just your market but over-all knowledge across the mortgage space. Well done

Bo

Apr 18, 2009 03:50 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Jason - Never think the USDA won't run out of money, they have a habit of doing that quite often. Luckily, most active USDA lenders know that money will be coming and continue to lend. 

Danny - Yes, this has been in the works for way too long. Glad they finally came through with it.

Tim - Sorry, don't have a link to the Federal Register, I just made do with the notice that USDA sent out.

Thanks Greg - Been around, but been really busy with http://eugeneloanguy.com and making loans. LOL

Todd - You bet, will call you Tuesday. BTW, are you going to REBAR in Portland Thursday?

I try Joanna, I definitely try.

Gerry - Right you are, this really is a heck of a change. The number of people that qualify with these income limits is really quite large. Also, a huge portion of the country qualifies for this program and there just aren't many 100% programs out there.

Bo- Thanks, I appreciate your praise.

 

Apr 19, 2009 10:34 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I will be there! This will be my first event ever and I wrote about how I felt about this the other day.

 

Apr 19, 2009 11:04 PM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Todd - Looking forward to meeting in person. Wow, going to be great.

Apr 21, 2009 02:27 AM