On April 19th the USDA/Rural Housing Program released a notice of changes to eligible area maps for USDA Rural development housing programs. For those not familiar with the program the most common use of the Rural Development Housing Program that I have been involved with is the Single Family Housing Guaranteed Loan Program . This program assists approved lenders in providing low- and moderate-income households the opportunity to own safe and sanitary homes as their primary residence in eligible rural areas. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers. In other words, this is a way to but a home with “no money down.” The program was created to help rural areas become more thriving communities by encouraging home ownership to help grow the community and improve the quality of life in those rural communities.
The program has been successful and due to that success, some areas have become ineligible for the program. Several cities in Tennessee are losing their Rural Development status beginning June 4, 2018. The following cities are now to become ineligible due to the increase of population in their communities: Gallatin (Sumner Co), Maryville (Blount Co), Morristown (Hamblin and Jefferson Co), Mt Juliet (Wilson Co), Spring Hill (Maury and Williamson Co) and Springfield (Robertson Co).
If you are a first time homebuyer or haven’t owned a home in the past three years and are interested in the USDA/RD Home Guarantee Loan Program it isn’t too late. There is still a small amount of time to buy your dream home with no money down but that time is quickly disappearing for some areas. Call or email me for more information on how you can still buy a home for zero money down.
Call the Property Kat team for immediate assistance with your home purchase!