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SFH Direct Loan and Grant Programs
September 21, 2023
Changes to the Eligibility of Certain Rural Areas Effective October 1, 2023
The new ineligible areas, resulting from the rural area review process, will become effective on October 1, 2023.
On October 1, 2023, the new ineligible area maps for the Rural Development Single Family Housing (SFH) and Multi-Family Housing programs will be updated to the USDA Income and Property Eligibility Site at https://eligibility.sc.egov.usda.gov. The current maps will be moved to the "Previous Eligibility Areas" tab.
Single Family Housing Direct Loan and Grant Processing
On October 1, 2023, all new applications must be for properties located in an eligible rural area based on the new eligibility maps.
In accordance with Handbook-1-3550, Chapter 5, a property that is located in an area being changed from rural to non-rural may be approved if all of the following conditions are met:
- If an application is received before an area’s designation changed and the applicant selects a property in the newly designated non-rural area, a loan may be made for that property if it meets all other eligibility requirements. (A printout of the map indicating the property address was previously eligible must be included in the file.)
- New conditional commitments may be issued in non-rural areas if a purchaser is found whose loan application was complete before the area’s designation changed. Existing conditional commitments will be honored.
- Real Estate Owned (REO) property sales and transfers with assumption may be processed in areas that have changed to non-rural.
- Section 504 Loan and Grant assistance may be provided on a property that already has an Agency loan.
- Subsequent loans may be made on a property that already has an Agency loan to:
- Make necessary repairs;
- Pay equity in connection with an assumption of the Agency loan;
- Pay equity to a departing co-borrower; or
- Refinance a direct or guaranteed borrower's loan with a new direct or guaranteed loan if it meets all other eligibility requirements.
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