IT’S OFFICIAL! Thousands of homes in the Baton Rouge market area are now qualified to finance through the USDA 100% RD Loan Program.
USDA has announced the changes to the Rural Development ineligible area maps!
A perfect example is REALTOR and Smart Agent Jay Johnson’s ACTIVE listing at 1332 Crossbow Drive, Baton Rouge, LA 70812 in Centurion Place sub division is now RD Loan Eligible. This property is almost in the heart of metro Baton Rouge!
If you are buying or selling a home and have been told the home is not “RD Eligible,” that may no longer be true! USDA has moved the lines, and made thousands of Baton Rouge Area Homes eligible for Rural Development (RD) Financing! On October 1st, 2014 announced changes to the USDA Rural Development ineligible areas will be implemented. I remember cringing as I read the email thinking that typically when something benefits the economy and the real estate industry in particular, the government seems to find a way to restrict or reduce its economic impact. Not this time!
For anyone reading this post who isn’t a REALTOR or a mortgage loan officer, the USDA Rural Development (RD) loan is a true 100% loan for the purchase of a home in a “rural” area. It also carries the cheapest mortgage insurance premium of any “normal” mortgage loan. The definition of “rural” according to the government (in this case, the Guarantor of the mortgage) is dependent upon it’s primarily location. If the home you want to buy is inside the eligible area IT QUALIFIES. However, there are exceptions that still can affect the property’s eligible status. One being, the properties must be subject to a “Rural in Character” clause, which means that a condominium unit, town home, or some patio home subdivisions MAY or may not qualify. The important thing to know is that many homes that a couple of months ago DID NOT qualify for an RD Loan, will qualify NOW. This is important; especially for the home buyer will little or no money saved for a down payment to purchase a home. But, it’s not just the cash strapped buyer that wins with this change. A great many buyers will benefit from excellent terms available from this type of mortgage!!
If you wish to find out if a property you are looking to buy or sell is USDA Rural Development (RD) eligible, contact one of our professional Realtors. They will be more than happy to provide you the information.
Jay Johnson, REALTOR, CEO
Smart Move Real Estate