Rexburg Loses Rural Development Loan Eligibility

3 Oct 2023 2:11 PM | Bob Canning (Administrator)

This news brief was provided by UVAR Affiliate Hazel Webb at Churchill Mortgage. For more information about this story please talk to your lender or contact Hazel Webb at 208-313-7189 or visit her website.


Hey, guess what? The USDA, often known as RD, used to let people in Rexburg get special loans to buy homes. But now, they've said Rexburg doesn't qualify anymore. You might be wondering, "Why?" Well, the USDA has rules about what counts as a "rural" area for these loans. One rule is that the place can't have more than 35,000 people. Rexburg has more than that - in the last count in April 2020, there were 39,409 people! Back in 2010, there were only 25,484.


Worried?

You might be worried and thinking, "What does this mean for us now?" Well, the prices of houses and the rates you pay for borrowing money have gone up so much that many people wouldn't qualify for these USDA loans anyway, even if they were still available. It's not because they're overwhelmed with debt or anything. It's just that the USDA has strict rules about how much money you can make compared to how much you owe, and there aren't many houses in Rexburg that fit those rules. It's as simple as that!

There are other options!

But don't fret! There are other options, like FHA and conventional loans, that are easier to get. They even have assistance to help you make a down payment. So even though we can't use USDA loans in Rexburg anymore, it hasn't stopped us before, and it won't stop us now. We'll figure out another way to help you buy a home!

This news brief was provided by UVAR Affiliate Hazel Webb at Churchill Mortgage. For more information about this story please talk to your lender or contact Hazel Webb at 208-313-7189 or visit her website.

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