USDA Rural Development has implemented BIG changes and added new guidelines effective 12/1/14. After reviewing the new rules, we have compiled some of the most important changes below. 1) Homes are now allowed to be in a flood zone. Prior to this rule, if any part of the home’s living area or any mechanicals were in the flood zone, the home would be ineligible for USDA financing. 2) Out buildings are allowed as long as they are not used for income producing activities. Hobbies are acceptable. 3) The maximum closing costs and prepaid items allowed to be paid by seller is now 6% of the purchase price. 4) Cisterns are no longer acceptable. 5) Homes with in-ground pools are now eligible. Prior to 12/1/14, no value could be given to in-ground pools. If the appraiser gave value to the pool, the amount would need to be deducted from the price. USDA has tightened guidelines on the borrower’s income, credit and ability to pay. It’s more important than ever to make sure the lender is verifying all income and credit PRIOR to issuing a pre-approval. For your clients’ sake, make sure you are working with a reputable and knowledgeable lender (like us!) familiar with the new USDA guidelines.
Author:Kathy Toonder Phone: 941-544-7270 Dated: January 14th 2015 Views: 725 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s Gulf Coast. Thirty years ago I came from Michigan to the Sarasota area to enjoy the beaches of the Sunshine State. The “Beach Communities” Longboat Key, Lido Key, Siesta Key and Casey Key are what draw everyone to make Sarasota their home!
Sarasota the “Cultural Capital” of Florida attracts homeowners that want more than just a beach experience. Sarasota and Manatee communities with the growth of new housing maintain their elegant but laid back style. It is a great place to make it your home to be able to enjoy lush natural environment and the amenities of a modern city.
I became a home owne r in Lakewood Ranch an award winning 17,500 acre site that provides a beautiful master planned, maintained and golf community. Get the picture: blue waters, white sand, plenty of sun, blue skies, fabulous food, casual outdoor dining, amazing fishing, play golf, boat races, music and art festivals….
My focus is to best understand the goals and visions of my clients, ensuring all decisions are made with a wealth of information and the necessary tools for a successful, rewarding experience.
I have found my “Slice of Heaven” I look forward to you finding yours!