Washington State USDA 2014 USDA Property Eligibility Changes (Demo)

[UPDATE – USDA announced today, January 10, 2014 they will not be making the proposed changes to the USDA Home Loan Program set to go into effect January 15, 2014.  For now, it’s business as usual.  Below are the “proposed changes” to the program]

Effective January 15, 2014, the  USDA will be imposing their revised property eligibility changes as a result of the 2010 Census findings (unless Congress extends the date which has happened twice now).

If you follow me at all, you’ll see that I am pretty passionate about  providing updated information on the USDA Home Loan Program for Washington State Home Buyers. USDA is one of the only “real” Zero Down programs available other than the VA Home Loan, and is a great resource for First Time Home Buyers.

Visit www.WashingtonUsdaHomeLoans.com for more information.

It’s hard for me to see changes such as the one’s proposed as it literally eliminates entire areas that once qualified for USDA financing. For example, much of Anacortes, Lake Stevens, Arlington and Marysville will not qualify as of October 1, 2013.

Below, I’ve provided a link that you can use to search property addresses, or look at regions that may be affected by the proposed changes.  As always, please feel free to call me directly with questions – (425) 350-7136.

USDA Proposed Boundary Changes
(note:  these are “projected” changes only)

How Do I Qualify For A USDA Home Loan?

Getting approved for a USDA Home Loan in Washington State has become a little more challenging in the past 2-years. More banks are discontinuing the program because of the average length it takes to close a USDA Loan, plus, with the refinance boom of 2012 and 2013, many loan offers and banks chased the “easy money” associated with refinances, FHA and conventional loans.

It’s important to ask your bank and loan officers how much experience they have dealing with USDA, and more so, how much recent experience they have with USDA. Once the loan is approved at a bank, and appraisal is ordered. That process of approval and appraisal can take about 5-30 days (depending on the bank).

As a direct USDA lender, my office currently pre-approves, appraises, underwrites and approves USDA Home Loans in less than two-weeks.  From there, the loan package is sent off to the USDA office in Olympia, and currently, they are running 3-4 weeks to issue the certificate of approval for funding.  [see Dan for updated USDA office turntimes – 425-224-8343] .

Criteria For Getting Approved for USDA Financing

– must have a credit score over 640
– must meet the annual household income limits (see worksheet here or call me…)
– property must be USDA eligible – click here for map
– complete the USDA secure online application (“step one” here)
click here – gather all of your financial/supporting documents (“step 2” here)
– fax/scan the above-mentioned items to Dan at (866)-465-0964

I hope this information helps you.  If you are interested in a detailed mortgage analysis like this, please feel free to contact me directly at (425) 350-7136, or email me at dankellermtg@gmail.com.

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