Moss Bluff LA Rural Development Area Change Going into Effect October 1, 2012
In Southwest Louisiana 100% USDA Financing (Rural Development) is an extremely popular home loan. Many first time home buyers have been able to purchase a home with this avenue of rural development financing.
A rural development loan is a 30 year fixed mortgage guaranteed by the US Department of Agriculture (USDA) which allows homeowners to purchase a home with no down payment, and in some cases, it even allows the closing costs to be financed into the loan. The loans are intended to target low to moderate income borrowers that want to live in USDA targeted areas. The Federal Government guarantees the lender up to 90 percent of the loan against losses if there is a default on the loan, thus enticing lenders to do the loans.
While the rural development loans may target rural areas, their definition of a rural area is probably larger than what most people consider rural.
What are the eligibility limitations to qualify for a Rural Development loan?
In order to qualify for a USDA loan, the lender typically wants a 620 or higher score. There are income limitations and requirements for the loans, so you have to make enough to qualify for the financing, but can’t make too much to be eligible for their guarantee. USDA does not allow you to own multiple residences and the purchase must be for a primary residence only.
Eligible Area of Moss Bluff Will Change October 1, 2012
The current eligible areas which qualify for Rural Development in Calcasieu Parish is all of Moss Bluff, Westlake, & Iowa In addition, south of Gauthier Road in Lake Charles and areas south of I-10 in Sulphur also qualify.
However, (Moss Bluff will cease to qualify as an eligible rural development area on October 1, 2012)
Moss Bluff Home Sellers should also take note of this change.Removing Moss Bluff from Rural Development eligibility could also affect Moss Bluff home sellers because it will decrease the number of qualified home buyers who need to purchase a home with 100% financing in Moss Bluff.
If you have been considering a home purchase in Moss Bluff and need 100% financing get under contract NOW before October 1, 2012.