Changes in USDA Loans

There has been talk of USDA getting rid of towns, some saying it has already been done.  Below is directly from USDA, aka the Rural Development loan, for the true facts.  The Rural Development loan is a 100% financing loan, specific to certain towns, with a household income limit for around here of $99,200.  It can also be tied in with CHFA programs.

-First off, funding has been restored for the Fiscal year 2014 by Congress, as of last Friday (11/22). 

-The areas of coverage are changing in January 16th, 2014.

-Keep in mind – the January 16th cutoff date is for commitments/approvals issued by USDA.  That means the loan has to be fully processed by the lender, submitted to USDA for approval, and reviewed by USDA to issue a commitment.  Timelines will be very important as we know some loans take longer to process and it sure would be a disappointment if we encountered delays on towns that are dropping off the coverage area so the cutoff date for taking contracts under the old coverage will be a deadline of 11/29 (this Friday)

I went through the map for you and determined Below are the ineligible towns as of 1/16/14:

Colchester

East Lyme

Gales Ferry

Griswold

Groton

Killingly

Ledyard

Montville

Mystic (both sides)

New London

Norwich

Old Saybrook

Pawcatuck

Plainfield

Quaker Hill

Stonington

Uncasville

Waterford

Westerly

As you can see, that takes out every town on the shore from East Lyme to Westerly.  Feel free to send me a specific address and I’ll be happy to find out for you if it is eligible.

Well it was a great loan while it lasted. 

Written by Keith Turner, McCue Mortgage, NMLS# 820813, 860-444-0650