While Congress has been enjoying their five-week vacation, many things have been left on the back burner, including the USDA loan program. As of October 1st, USDA Financing will be dropping more than 90 communities from their list of formerly qualifying areas. Unfortunately, Chelsea, Calera and Moody real estate, including our Alden Glen community, will be affected.
USDA loans are currently the only federal housing funds available for financing and allow new homebuyers the opportunity to purchase homes with their no-down-payment USDA loan. Due to population increases noted in the 2010 Census, communities are no longer meeting the ‘rural’ eligibility guidelines required if they have populations over 25,000. Why? The guidelines were created in a clause that was originally enacted in congress in 1990 and then extended in 2000 concerning population size; but now the clause is at the end of its life and is expiring. This means no USDA funding for any area that’s population has grown over 25,000 people since 1990.
The National Association of Realtors is pushing back alongside the National Association of Home Builders and the Mortgage Bankers Association. They hope to save USDA financing in many areas and are asking for the USDA to grant an extension. A few members of Congress have also asked for a one year extension of the USDA’s existing eligibility. Until Congress makes a decision, many pending loans could be in affected.
While the outcome of the USDA home financing is unclear, one thing is clear, if you are looking for a new home in Birmingham, Trussville, Hoover, Alabaster or Moody, Harris Doyle has the perfect home for you.
For more information on all of our beautiful communities and the luxury homes available, visit the Harris Doyle Homes website today!