100% Financing STILL Available Across Florida
Home buyers looking to purchase with no money down can breath a deep sigh of relief now, as it has been confirmed that the USDA mortgage program will NOT be changing their eligible areas at this time.
USDA mortgages offer buyers 100% financing for properties located in specific, ‘rural’ areas. The proposed changes would’ve drastically reduced those areas that USDA considers rural, thereby eliminating this awesome, no-down-payment loan option for a huge number of home buyers.
Home buyers can thank the recent passing of the 2014 Consolidated Appropriations Act for the reasoning behind the good news. There is no specific timeline for when those changes will indeed be implemented, but some believe it may not be until the end of this year or beginning of next.
Take a look below and you’ll see how significant the changes would be across the State of Florida. You can see a major increase in the ineligible areas on the proposed changes map; this is what we all just avoided. Whew!
2014 USDA Loan Changes
(what would’ve happened if the changes took place)
Current Eligible Areas
What it Means for USDA Home Buyers
Because these 2014 USDA loan changes didn’t take place, home buyers with limited funds for down payment will now have just as many options as before when choosing the location of their next home. As you can see above, USDA is going to eventually reduce the eligible ‘rural’ areas to more accurately reflect the 2010 Census data.
You see, the big ‘loophole’ (if you will), with USDA is that it will allow 100% mortgage financing for properties that were considered rural (under a certain population density) as per the most recent US Census. Since the Census is only performed every 10 years, there will always be areas with fast growth that will indeed qualify for USDA loans. A good local example of this would be the ‘Independence’ community in Winter Garden, Florida. Although no one would consider that rural, it is still included in the ‘no money down’ USDA-eligible areas…for now.