USDA is once again talking about rezoning the eligible rural housing locations in Florida to keep up with the new US Census data from 2010. This was talked about last year, but delayed. Now it’s back on table this year and should be decided by October 2012. What does this mean to prospective home buyers in Florida? What effect would it have on a USDA home mortgage?
USDA has become the primary option for FL homebuyers to get 100% financing since the end of the all the housing boom in 2007. As a result, the volume of USDA loans has gone up over 250% since 2007 as seen below. First time home buyers especially rely on the USDA loan as they don’t have the needed 20% down payment required by many conventional loans. Enter the 100% USDA Rural Development.
Many of the most popular rural approved USDA locations in Florida are just outside of the major cities.
Outside of Tampa – Wesley Chapel, Riverview, Ruskin, Brandon, Land O Lakes FL
Outside of Jacksonville- Orange Park, Middleburg, Fleming island, Callahan, Yulee, Fernandina Beach FL
Outside of Orlando – Winter Garden, Apopka, Deltona, Clermont, Kissimmee FL
With the proposed map changes, many of these popular Florida communities mentioned above will no longer be eligible for 100% USDA financing. Senate bill S.2375 is a new bill that has included a “grandfathering” provision that allows the USDA eligible locations to stay the same until 2013. Let’s hope this bill passes so that homebuyers with limited savings can enter the Florida housing market and benefit from this great loan!
Questions? Let us help, please submit the information request on the right side of your screen. Please also read through the blog for the latest USDA mortgage information. Visit us at www.usdamortgagesource.com