Is Your Area Eligible for a USDA Loan Under the New Spending Bill?

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Mortgage and Lending with Metroplex Mortgage Services NMLS ID# 185288

How Does the Omnibus Spending Bill Impact the USDA Loan Program?

After HR 2775 ended the government shutdown in October of 2013 Congress had a deadline of January 15th to pass another funding deal, either a full spending bill for fiscal year 2014 or another Continuing Resolution, to avoid another shutdown. We are happy to report that they not only have agreed to pass the Omnibus Spending Bill for fiscal year 2014, but also the FY14 Consolidated Appropriations Act that directly impacts the USDA Loan Program!

USDA Eligible Area Guidelines

Congress passed the FY14 Consolidated Appropriations Act this week, which is part of the Omnibus Spending Bill that passed  last month which funds the government for the remainder of fiscal year 2014.

Section 737 of the bill extends the rural definition through the end of the fiscal year, which ends on September 30th, 2014. As a result, all communities that are currently eligible for the USDA loan program will remain eligible through the end of the fiscal year. This continues to provide access to the USDA Rural Development Loan Program for more than 900 communities nationwide.

While this spending bill extends current eligibility through September 30th, Washington is working towards ensuring that many, if not all, current eligible areas remain so for the foreseeable future. The very important Farm Bill will be pushed to be voted on prior to the end of the fiscal year. As a reminder, the language in the Senate’s version of the farm bill would extend the majority of the existing areas through the next census decennial review in 2020.

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