USDA - Use it or Lose it! Maps change 3/27/2013

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937

USDA Changes are looming- Don't miss out on a great program


usdaThe 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:

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!


Robert Rauf

Mortgage Loan Originator

NMLS ID# 248937 or my blog:

(732)557-6920 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

Real Estate Mortgage Network Inc.




Equal house

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 for more information.


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Comments (17)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Robert - Thanks for the latest map changes about USDA use it or lose it 3/27/2013.

Feb 06, 2013 05:27 AM
Maya Thomas, Broker
Tampa, FL
Please see my client recommendations.

What a GREAT program!  It would be a shame to loose it.  Hopefully people will take a few minutes out of their day to email, call or write their Congressman or Congresswoman so that we don't loose this fantastic funding source.

You are so up on the market and that is exactly what a buyer and Realtor should look for in the lender! 

Thank you for the great info and keeping me informed!

Feb 06, 2013 06:24 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Thank you for stopping by John, I am going to miss the program if we dont have it available in our area

Feb 06, 2013 07:36 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Thank you Maya, I hope the maps dont change... This wont hurt the Keys all that much, but other parts of FL will feel it

Feb 06, 2013 07:36 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I do a lot of USDA business, but as you said, changes are coming pretty soon. Many of the transaction include folks that never would have been able to purchase a home, most are still in the same loan.

Feb 06, 2013 09:28 AM
Christine O'Shea
Christine E O'Shea Broker - Naples, FL

Thanks for the information, the USDA loans always fascinate me and I am going to check out your link!

Feb 06, 2013 10:24 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Joe, it is a great program, Isn't it?  one of my favorite options for my lower down payment buyers when they fit the mold.

Feb 07, 2013 03:14 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ


You should take a look to see if it is available in your area, if it is- it is one of the best ways to buy a home for your low down buyers.

Feb 07, 2013 03:15 AM
Gerry Suarez Jr.
Jet Home Loans NMLS 1660135 - Maitland, FL
FL Mortgage Guru

Thanks for keeping attention focused on this Robert. I just heard a rumors we may have proposed maps by sometime next week here in FL. Do you guys up north have any yet?

Feb 08, 2013 12:51 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Gerry, We saw a "Leaked" map last Summer that effectively takes away 80% or more of our current USDA eligible area... So it is a big BIG change for my area.

Feb 08, 2013 08:32 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Great information, Robert. I look for an update to see if this actually goes into effect or if enough enough people complain and something is done to avert this.

Feb 11, 2013 04:57 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Thank you Barbara Jo! I am sure I will blog about this again in March!

Feb 11, 2013 05:37 AM
Teral McDowell
Referral Patners LLC - Murphy, TX

Checking the map it appears that the rural area in my neck of the woods remains eligible which is good for local buyers; thanks for sharing Robert.

Feb 12, 2013 11:47 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Teral, That link gives you "today's" Map.  The new maps are not official yet nor are they readilly available.  If you are in an area that is truly rural you will be OK, they are using 2010 census numbers, and populations under 10k is what they are looking for.

Feb 13, 2013 01:17 AM
Kari Battaglia, PA
RE/MAX Platinum Realty - Venice, FL
Love Where You Live

Robert - USDA is a great program and I like to recommend this to my customers here in Florida.  I have not heard about this news for Florida but I will check to see if this is the case here. Thanks for the tips.

Apr 26, 2013 08:21 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Kari, it is a great program, - the new maps are on the website now, listed as future maps... wouldnt hurt to check your area...

Apr 27, 2013 02:20 AM