USDA changes have taken effect!

Let's revisit the USDA changes that we informed you about earlier this year.

Although these changes technically take affect October 1, 2014, the USDA office is extremely backlogged nationwide for new USDA loan files. They are currently quoting 35 business days for turn times of new files submitted to them--this is after your mortgage broker gets you completely approved, and your appraisal has been completed. That said, USDA loans are taking quite awhile right now, and even if your file was approved by us and submitted to USDA today, your file will be affected by the new rules because it won't be reviewed by USDA before October 1.


So what are the changes? First, the USDA loan eligibility area has been reduced, and therefore a list of Oregon cities are no longer eligible for 100% rural financing.


Oregon cities that are no longer eligible for USDA financing:
Albany
Ashland
Bend
Canby
Central Point
Corvallis
Cornelius
Dallas
Damascus
Eugene-Springfield
Forest Grove
Grants Pass
Klamath Falls
McMinnville
Medford
Millersburg
Newberg
Portland metro
Redmond
Roseburg
Salem-Keizer
Sherwood
St. Helens
Wilsonville
Woodburn

In addition to this change in eligibility area, the required annual mortgage insurance rate has increased from 0.4% to 0.5%. Do keep in mind though, that this rate factor is still significantly less than an FHA or Conventional loan.

Despite these new changes, USDA is still a great 0% down financing option for thousands of  Oregonians. Call us today if you have questions about this program, or are ready to get pre-qualified!