We’ve been on alert that the Tehachapi area may no longer be eligible for 100-percent financing under the USDA Rural Development Guaranteed home loan program.
Recently I actually spoke with the Tulare rep for USDA Rural Development Guarantee and even they don’t yet know what is happening with the program going forward.
My last article noted that 2010 Census figures put Tehachapi over the current population limit for USDA’s Rural Guarantee Home Loan program, effective Oct. 1, 2012.
However USDA requires a 30-day notice before they can make any changes – We’re into the second week of September and they have not posted their notice, so in theory we are okay for USDA until at least mid-October.
Also Congress needs to act on the change before it becomes effective: They could choose to extend the program as-is, or increase the limit, or “grandfather” us in. No telling what they will do, or what their timeline is for making a decision.
Here is the page the announcement will post to: http://www.rurdev.usda.gov/CA-SFHPrograms.html
The other thing about USDA is that every year about this time they talk about running out of funds for the program, but there is no word about jeopardizing the funding for purchase loans.
In the meantime, make sure you are working closely with your local lender to get your loan through the system quickly, just in case.