Tuesday, September 23, 2014

Kentucky Rural Housing Development USDA Fee Change and Rural Map Change

Kentucky Rural Housing Development USDA Fee Change and Rural Map Change


There are two changes going into effect on October 1, 2014 that affect Kentucky RHS USDA loans.
New Eligibility Map
  • Maps used to determine KY USDA GRH eligibility will be updated effective October 1, 2014.
  • The announcement from the USDA indicates the date the RHS office receives the complete loan guarantee request will determine which map is used to determine eligibility.
    • Complete applications received on or before September 30, 2014 will use the current maps. Applications received after September 30, 2014 will use the new maps
    • .
    • The “Farm Bill” revised the eligible rural area definition for USDA housing programs by 
    • amending population limits used to determine eligibility for program benefits. It also retained 
    • the requirement for eligible areas to be rural in character and have a serious lack of mortgage 
    • credit. However, on August 21, 2014, the Secretary of Agriculture suspended any changes to an 
    • eligibility determination based solely on the “rural in character” clause through September 30, 
    • 2015. 
    •  
    • On October 1, 2014, the USDA Rural Housing Service will update maps used to determine 
    • property eligibility. The updated maps will include all eligibility changes. Changes that were 
    • originally slated to take effect due to the "rural in character" clause will not be implemented at 
    • this time. In advance of the upcoming map changes, future eligibility maps will be posted to the 
    • Eligibility Website on or about September 22, 2014. A notification will be sent once the new 
    • future eligibility maps have been posted. 
    •  
    • Kentucky Rural Development Eligibility maps for 2014 were scheduled to be posted to the Eligibility web site on September 22.

Annual Fee Change from .40% to .50%

Reminder . . . October 1, 2014 is also the date the Kentucky Rural Development Gu annual fee changes from .40% to .50%. The annual fee change is based on Conditional Commitment Date.