The US Department of Agriculture, yes the same people who check our vegetables, offers a mortgage loan program designed to help our more rural communities grow. The program has no down payment requirement, and is suited for more conservative borrowers who don’t have a ton of Student Loan Debt, and who want to maximize their home purchase with very low mortgage payments.To qualify, USDA Home Loans in Apex and Holly Springs require that you buy a property that is within the “rural” USDA Loan Footprint.The USDA Home Loan Maps For Apex and Holly Springs NC currently used for qualifying a home for the program are scheduled to change about every 6 months.
USDA Home Loan Maps For Apex and Holly Springs NC 2022
For more than 5 years, we have been told these maps are going to change, and large areas near Holly Springs and Apex, NC would not longer be eligible for USDA Home Loan Financing. The most recent USDA Home Loan NC maps were released on September 22, 2020.
Congress "kicked the Can" on deciding what parts of our state are “rural” and are continuing to use the 2010 census maps. We understand that in late 2022 they will be required to consider this new definition of Rural, and make the sweeping changes that have been discussed. The Census data is released every 6 months or so, and there are slight changes to streets and neighborhoods that can still use the program. READ: Check Back With Us, it’s all continuing to change
The “A” on the Map above represents where you will continue to see the majority of the changes for USDA Home Loan Maps For Apex . This is what the map looked like in 2015. I'm putting it here for folks who might have purchased a home using USDA. You might not be able to SELL that home with USDA Home Loan in 2022. Here are the 2022 USDA Home Lan Maps for Apex NC.
Note that the areas that are shaded do NOT qualify for the USDA Home Loan Program. However, there are areas near Apex Barbeque Road and Green Level High School that qualify for no down payment, USDA Home Loans!
USDA Home Loan Maps For Apex and Holly Springs NC
This is a different view of the Holly Springs, Apex, NC USDA Home Loan Eligibility Maps in 2022. The shaded areas are the areas that don’t qualify – so you can understand that downtown Apex, and most of Cary (for instance) are not rural areas and don’t qualify for USDA Home Loans… once you get outside of Apex, towards Jordan Lake – or you head from Holly Springs away from Hwy 55 and the Outer 540 Loop – you can see that those are could be subject to change with, the majority of which we understand will happen at the end of 2022.
If you are looking for a home in an Incorporated City Limit, it generally does not qualify.
See that Red Pin on the Map? There’s a house for sale there, that is in good shape, good schools for $315,000. It’s got 3 bedrooms, and 2 baths and would be a great first home for a family! I hear people all the time tell me that you can’t buy an Affordable house in Wake County. Here’s one, and it qualifies for NO DOWN PAYMENT!!
USDA Home Loans NC may well be the best mortgage program available for those who are able to meet the income restrictions, and are interested in living in a more rural area of NC. The program offers some of the best mortgage rates, and has very low monthly “PMI” Factors.”
Because of that, the payments – and therefore the ability to qualify for a slightly bigger home, makes the USDA Home Loan NC a very popular program.
USDA Loans NC and Student Loan Guidelines
Most mortgage programs require us to count some form of Student Loan debt in our qualifying Debt to Income ratios.USDA Home Loan NC underwriters are the most diligent, and require that we prove that the payment is actually a fixed rate mortgage payment.
USDA Guidelines state that we must calculate qualifications as follows:
“Include the greater of 1% of the outstanding loan balance or the verified fixed payment reflected on the credit report. Income based repayment plans (IBR), graduated repayment plans, adjustable, interest only are all subject to change the lendermustuse .5% of the outstanding loan balance as the payment amount.”
Many Loan Officers do not realize this is the case – because of that, borrowers are being told they qualify for a USDA Home Loan, when in fact they don’t. If your student loan payment is in deferment right this minute (and you are applying for a mortgage) we are required to count .5% of the balance.
A college degree, or Job training that provides some potential for increased earnings MIGHT also be used as a compensating factor for higher qualifying ratios. in North Carolina, the USDA Underwriters have always been one of the USDA compensating factorsfor a debt ratio waiver that helps first time home buyers.
Reserves: The term “reserves” refers to the amount of money left over after closing. For If you don’t meet the standard ratio requirements, this could be a factor. For a long time now, we’ve seen thatthe automated approvalsin the USDA Automated Approval System show that reserves must be the recent 2 month average balance of liquid accounts. Gift funds are not included in the reserve total; if the borrower has overdraftNSF on bank accounts, no reserves are allowed to be listed. THIS IS A BIG CHANGE IN GUIDELINES)
If you are considering a home purchase in the Apex or Holly Springs area, we strongly suggest that you consider USDA for your Mortgage Financing options, even if you want to make a down payment! For more information about a specific address, please click here.
Because of the potential upcoming changes – we anticipate a “rush” for homes that qualify for USDA Home Loans. Don’t WAIT – it’s a great time to buy a home in Apex and Holly Springs. A substantial portion of our business is Government financing, and we have the best Investors, underwriters and the LOWEST RATES in the area! If you have questions aboutUSDA Home Loans Holly Springs or the USDA Home Loan Maps For Apex and Holly Springs NC. Please call Steve and Eleanor Thorne,919-649-5058 for more details!
ORIGINALLY Posted at NCFHAExpert