USDA Changes are looming- Don't miss out on a great program
The USDA has been very quiet, but looming in the near future is a big change that will basically eliminate the program for much of NJ. The USDA is a GREAT option for buyers. Not only does it allow no money down, but it allows it at market rates with a guarantee fee that is a fraction of the cost of an FHA loan.
(You can view maps here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do)
As of March 27th these maps will change based on the implementation of the 2010 census data.In English: We anticipate losing 80% of the USDA eligible areas we currently have in NJ. It will take Congressional action to keep this from happening, so Contact your Congressman – That may be the only way we will see the USDA as an option for our buyers moving forward.
In light of this it is important to remember: Current buyers/shoppers MUST be under contract (and out of attorney review) as early in February as possible if there is any hope to meet the deadline.USDA requires a commitment be issued by the USDA to lock in the old guidelines. I anticipate the agency to get busy as we approach the deadline and just a submission to the USDA will not guarantee the loan, only a commitment will.
This has been one of the better ways for our typical low down payment buyer to finance a home, saving thousands of dollars up front and having a payment that is often $150/month lower than typical low down payment programs available. It will hurt to lose it as an option for our buyers.
Have a great week!
Mortgage Loan Originator
NMLS ID# 248937
Since 1987 I have been helping my clients fulfill their dream of home ownership!
Real Estate Mortgage Network Inc.
Real Estate Mortgage Network, Inc. is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.REMN.com for more information.
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