USDA Pulls Back On Oct. 1st Loan Changes

Good news if you’re looking to buy a home in several areas close to Birmingham…

The U.S. Dep’t. of Agriculture has just announced that a previously planned October 1st change which would have meant the end of federal mortgage funding for two areas in Shelby Co. has been put on hold until late March of 2013.

This latest announcement means that Calera and Chelsea will remain on the list of communities eligible for Buyers to receive USDA funding on home mortgages, at least for another six months.

More than 90 communities nationwide—including Pleasant Grove in Jefferson Co. and areas in Walker and St. Clair counties—had been targeted to lose their eligibility, effective October 1st.  Yesterday, however, Dallas Tonsager, USDA’s Under Secretary for Rural Development, issued a notice saying the changes would not take effect next week.

USDA loans are popular with many Buyers because they do not require down payments.  They are available, however, only in areas USDA specifically designates.

As it stands now, the changes will take effect March 27, 2013 … unless USDA or Congress takes action in the meantime.

About David Black

Colleen and David Black love what they do, and that's helping people who want to buy or sell homes in the Birmingham and Shelby Co. area achieve their dreams...

Posted on September 26, 2012, in Real Estate and tagged , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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