USDA recently released proposed changes to eligibility areas in Ohio and fees that will go into effect October 1st.
USDA makes these changes for its USDA mortgages based on:
- increases in population based on the 2010 census
- the area no longer meets the definition of Rural because the county is now part of a Metropolitan Statistical Area (MSA) and was not part of an MSA in 2000.
- the area will no longer be eligible due to the expiration of the special consideration exception (“Grandfather Clause”)
Generally when USDA makes changes to the mortgage program, they apply to all new Conditional Commitments issued by USDA after the effective date. Currently USDA Guarantee Loans in Ohio are taking a minimum of 45 days to close, as the Ohio USDA office is taking 20+ days to review the file once it makes it there.
Ohio USDA Mortgage Change in Eligible Areas
The areas in Ohio that will be affected by the eligibility changes and the reason for the change are:
AREA COUNTY POPULATION INCREASE? "GRANDFATHER CLAUSE"? OTHER
Aurora Portage X
Batavia Clermont Assoc. w/ Urban Area
Beechwood Trails CDP Licking Assoc. w/ Urban Area
Bellbrook Greene Assoc. w/ Urban Area
Clayton Montgomery X
Etna CPD Licking Assoc. w/ Urban Area
Granville Licking Assoc. w/ Urban Area
Kirtland Lake Assoc. w/ Urban Area
Lebanon Warren X
Lewisville Stark Assoc. w/ Urban Area
Maineville Warren Assoc. w/ Urban Area
Marysville Union X
Monroe Butler X
New Miami Butler Assoc. w/ Urban Area
North Zanesville Muskingum Assoc. w/ Urban Area
Pataskala Licking X
Sidney Shelby X
South Lebanon Warren Assoc. w/ Lebanon
Streetsboro Portage X
Tipp City Miami Assoc. w/ Urban Area
Trenton Butler X
Waite Hill Lake Assoc. w/ Urban Area
Walbridge Wood Assoc. w/ Urban Area
Willoughby Hills Lake Assoc. w/ Urban Area
Ohio USDA Mortgage Change in Fees
As of October 1st, Ohio USDA mortgage fees will change to:
Up-Front Guarantee Fee
- Purchase Transactions 2.000% (no change)
- Refinance Transactions 2.000% (increase, now 1.5%)
Annual Fee (paid Monthly)
- Purchase Transactions 0.40% (increase, now 0.30%)
- Refinance Transactions 0.40% (increase, now 0.30%)
The increase in fees will be effective with Conditional Commitments received from the Ohio USDA office on or after October 1, 2012.
If you are in the market for a USDA mortgage, whether purchasing a property or refinancing your current USDA mortgage, complete the Ohio Interest Rate Quote request form to get your free, no obligation quote today.
