USDA Loans Guide Lines Changing in June?

Question

My sister is trying to purchase a home in Land O' Lakes, FL & a lender told her that she has to find a home by June 2nd & get it under contract because Land O' Lakes is no longer going to be eligible for USDA's Loans. Does anyone know anything about this?

Steven Mason · Answer

@Michael Lopez Yes sir, she is still searching.

Steven Mason · Answer

@Chinmay J. Thank you for your feedback. Yes she has considered this as an option, but she already pre-qualified for the USDA loan and it fits her financial situation perfectly.

Chinmay J. · Answer

The United States Department of Agriculture is updating its guidelines. They determine what area is rural and what's not. Its as simple as that. With fiscally responsible administration, the needless waste will be trimmed.  Your lender has knowledge about this, since they must have received some memo from USDA.

I had actually used USDA to buy my very first property. It worked out just fine for me. I lived there for couple of yrs before renting it out. They do follow very strict guidelines. Remember you are buying the property with 0 down. The ratios turned out in my favor, but in lot of cases either you are too well off, or you make too little to qualify.  If everything works out fine, the house is too expensive.  It took a while for things to work out for me.

Has she considered FHA with only 3.5% down?