Future Eligible Area Maps release by USDA for FY2015

By Todd Abelson NMLS #180858 on .

Future USDA Eligible Area Maps are Available!USDA

Future eligible area maps are available on the USDA Income and Property Eligibility Site.  Click on “Future Eligible Areas” to preview the areas that will be affected.  Applications received beginning October 1, 2014 will be subject to the new eligible area maps.  Please be advised that every effort has been made to provide accurate and complete information regarding proposed ineligible areas on this website based on Rural Development rural area requirements as defined in the 2014 Farm Bill, using 2010 census data. Some minor modifications to areas may occur prior to the October 1, 2014 implementation.


– Most of Vail, AZ

– Most of Marana, AZ … although Avra Valley & Picture Rocks appear to be saved


– All of Sahuarita

– All of Green Valley

Some Regulation changes

The CFR 3555 regulation that will become effective September 1, 2014 will include some key changes.  Below are highlights of some of those changes or clarifications with regards to Property and Appraisal Requirements:

  • The site must be typical for the area.  The previous land to total value limitation of 30% has been removed.
  • The site must not have income-producing land.  Having a garden for personal use is allowed.
  • In-ground swimming pool restriction has been removed.
  • Water systems that require repetitive treatment to be safe bacterially or chemically are not acceptable.  Properties served by cisterns are not acceptable.

One new change effective October 1, 2014:

  • The annual guarantee fee will be increased from 0.4% to 0.5% of the unpaid principal balance

USDA Funding Update

Looks like the House and Senate will more than likely pass another Continuing Resolution this year.  All proposed budgets call for $24 Billion in authorizations for the Section 502 Guaranteed Rural Housing Program.  If the Democrats control the Senate, Congress will more than likely do as they did in FY14 and pass an Omnibus Bill.  If the Senate is controlled by the Republicans, Congress will more than likely pass a CR through March.   Please call me to discuss in further detail.

 Overall, this is good news in that while many geographies have been effected, we ended up with 4 years of relief. As a result, MANY PEOPLE were able to purchase homes that would have been ‘passed over’.

Got a question? Call me! Todd Abelson, Sunstreet Mortgage, LLC (520) 331-LEND (5363).


2010 Census Data Implementation-Eligible Rural Areas changing 10/1/2013

By Todd Abelson NMLS #180858 on .

USDA_Rural_Zero_Down_Home_Loan1This update reminds readers about a bulletin that was updated on March 28, 2013 and provided guidance on eligible rural areas for RHS housing programs.

On March 26, 2013, the President signed “H.R.933 — Consolidated and Further Continuing Appropriations Act, 2013” which provided funding through September 30, 2013. The Bill also extended the eligible rural areas that were in effect as of September 30, 2012 until September 30, 2013 for Rural Housing Service (RHS) housing programs.


Barring any Congressional actions, implementation of the 2010 Census Data is on schedule for October 1, 2013, which will modify the eligible rural areas for the RHS housing programs. The future eligibility area maps can be viewed on the USDA Eligibility web site at: http://eligibility.sc.egov.usda.gov.

Since there are only 9 legislative days remaining this month, there is a reasonable expectation that Congress will enact a short-term Continuing Resolution (CR) until mid-DecemberAs with previous CRs, this will allow USDA to extend the “rural” definition for all currently eligible rural areas through the term of the CR. The CR gives advocates more time to access USDA Rural Housing programs until Congress enacts its FY14 Appropriations bills or moves the Farm Bill through conference committee.

Bottom line: if you are planning on buying a home in a presently eligible area, or are a Realtor working with someone that is planning on buying a home in a presently eligible area, you should proceed with all due haste and plan on closing your purchase transaction in SEPTEMBER!

Stay tuned for further updates… call Todd Abelson at Sunstreet Mortgage in Tucson, Arizona for all your mortgage needs (520) 331-LEND (5363)

USDA Loan program changes effective 10/1/12

By Todd Abelson NMLS #180858 on .

USDA Announcement –

In a nutshell:

1. The Up-Front “Guarantee Fee” for purchases will remain at 2.0 points, and increase from 1.50 points to 2.0 points on refinances effective with all loans Certified after October, 1 2012.

2. There will be approximately a two-week gap in fundings from roughly October 1 – 15, 2012 (due to the start of the new government fiscal year).


The Single Family Housing Guaranteed Loan Program (SFHGLP) will have ample purchase funding available through September 30, 2012.

Fiscal year (FY) 2013 will begin on October 1, 2012. Purchase funds will not be available for approximately two weeks or longer after the new FY begins. During this timeframe, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority.” The FY 2013 upfront guarantee structure of 2 percent and an annual fee of .40 percent will apply.


Due to increased interest in the refinance feature of the SFHGLP, refinance funding was exhausted on August 21, 2012. Effective immediately, Rural Development will issue Conditional Commitments subject to the availability of Congressionally appropriated funds. The FY 2013 upfront guarantee fee of 2 percent and annual fee of .40 percent will apply. This notice is effective for all refinance transactions including Rural Refinance Pilot Program loans.

Call Todd Abelson for all your residential mortgage needs at (520) 331-LEND (5626)!