Changes in USDA Rural Housing Boundaries
This is huge for our buyer's and seller's in the effected areas! Please see this notice received from Josh Mettle at City Wide Home Loans and feel free to contact us with any questions or how this change will effect you!
There is a proposed change in eligible area boundaries that if approved, will go into effect October 1, 2012. The most likely areas that will be removed from eligibility are Eagle Mountain, Saratoga Springs, Tooele City, and Cedar City.
For those who are considering purchasing an existing home or building a home in one of these areas, please keep in mind the following items:
- Should be under contract no later than 8/31/12 and in our office by 9/1/12. The loan must be completely underwritten prior to submission to Rural Development.
- The fully underwritten and approved loan package must reach USDA office no later than September 15th to be guaranteed that a conditional commitment will be issued prior to September 30th. (Loans may be submitted after this date but will be done on a first come, first serve basis.)
- The USDA must issue commitment prior to September 30th, 2012 and must close by 12/31/2012.
You do not need to close the loan prior to September 30th. The conditional commitment is good for 90 days. Conditional Commitments can be issued on appraisals that are subject to completion for new construction.
Please be aware that if the loan does not close within 90 days of issuing the conditional Commitment, USDA will not issue a loan note guarantee.
Also, you should know about the revised the Up-Front Guarantee Fee and Annual Fee structure for Rural Development.
Changes to Guarantee and Annual Fee
Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, Rural Development will revise the Up-Front Guarantee Fee and Annual Fee structure as follows:
The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012.
The FY 2013 fee structure is only applicable to Conditional Commitments issued on or after October 1, 2012, Conditional Commitments issued by Rural Development prior to this date are not subject to the new fee structure.
If you have any questions about the new fees or deadlines, please give me a call at 801-747-1210.
