USDA Home Loan Changes In NC Coming

This state has grown Soooo much, that when the 2010 Census maps were drawn up, and analyzed, it showed that 21 Communities in NC was scheduled to lose the opportunity to get mortgage loans approved using the USDA Home Loan Program starting October 1, 2012. 

Congress passed the Senate USDA Appropriations bill, S.2375 which included a grandfathering provision.  The provision is for places that have gained population and would otherwise become ineligible for USDA Home Loans.  This bill would keep them eligible through the end of June 1, 2013.

With this “grandfathering” – on May 31, 2013, many areas in NC will loose eligibility for USDA Home Loan financing.  The current proposed List includes:

  • Belmont

    NC Counties Loosing USDA Home Loan Financing

    NC Communities that can NOW get mortgages with the USDA Home Loan Program could LOOSE that option on June 1, 2013 with new guidelines for areas who have seen a Population Change!

  • Clayton
  • Eden
  • Fuquay-Varina
  • Hendersonville
  • Holly Springs
  • Hope Mills
  • Knightdale
  • Leland
  • Lenoir
  • Mebane
  • Morganton
  • Mount Holly
  • Murraysville
  • Newton
  • Piney Green
  • Reidsville
  • Smithfield
  • Summerfield
  • Tarboro
  • Wake Forest

The folks in these areas need to be aware of this coming change – because it will likely make it more difficult for some people to purchase homes there!  Here’s a Link to the OFFICIAL Rural Indicators Map on the USDA Site.

USDA offers 100%, no money down home loans designed for folks who have pretty good credit, good jobs, and want to live in more “rural” areas of NC.  I think it’s a great place – but frankly, I’ve never thought of Tarboro, or Belmont (for instance) as huge Metropolitan areas – so I was surprised! (See the Current USDA Eligibility Map for NC)

Here’s the actual report from USDA Single Family Homes.  Is this one of those “Good Problems To Have” kinda’ things?  For many areas, this is THE mortgage program of choice, and it’s why certain subdivisions in Holly Springs and Wake Forest (for instance) have been so popular!

We recently did a comparison of all of the No Money Down Home Loans in NC, and we still think USDA Home Loans are the best program available – for the folks who want to live in a Rural part of our state, and who qualify!
If you are looking for a USDA Home Loan in North Carolina – call Steve and Eleanor Thorne!  919 649 5058 – we know the USDA Home Loan program requirements, and we can help you get pre-qualified to buy your dream home in NC!


  1. Eleanor this is a big set back for folks looking to use the USDA program in Clayton. How are they classifying it by within the city limits or mailing address?

    • David – The Senate passed a bill that extends the program “footprint” for 12 months – so until Oct 1, 2013. But it is a HUGE deal for Clayton and Smithfield. Here’s some of the background that I found on it. But the important thing is to see that it’s mostly based upon Census, which as I understand it is “Town Boarders” – not mailing address? Here are the “Research Notes” about the USDA Home Loan Changes that are coming to North Carolina.

      The idea of changing the “description” of Rural by the USDA Home Loan Program is the part that is additionally “scary,” since it substantially changes USDA Eligibility in NC. Here’s some additional Research done on the proposed USDA home loan eligibility changes.

Speak Your Mind