Buying a Home in Clayton Town Limits?
That’s right after October 1st 2013 the town of Clayton will no longer be considered rural enough to be eligible for the loans offered by the USDA Rural Development Home Loan Program. USDA backed loans have been a very popular alternative to folks who were ready to buy a home in Clayton, North CarolinaThey have decent credit, decent incomes but did not have the down payment often required by other loan programs. USDA loans also allow the borrower to roll the guarantee fee into the loan and there is no PMI which is a big saving for families starting out as first time home buyers or families looking to move up to a larger home and want to stay in Clayton.
A Clayton Mailing Address Does Not Mean Ineligible
So does this mean if the house I want to buy has a Clayton mailing address it won’t be eligible for a USDA loan? Not necessarily, according to the newly released map is showing the ineligible area of Clayton as just the town limits, so for example, Riverwood Athletic Club is within the town limits of Clayton and would therefore not be eligible for a USDA loan whereas Riverwood Golf Club is not within the town limits and therefore would qualify for a USDA Loan. Glen Laurel has a Clayton mailing address and is within the town limits of Clayton and therefore homes for sale in Glen Laurel after October 1st 2013 will no longer be eligible for USDA financing whereas homes for sale in Flowers Plantation which also has a clayton mailing address but is not in the town limits would be eligible for USDA financing.
Other Loan Programs Available For Homebuyers in Clayton
How will this affect home buyers and sellers in Clayton after October 1st 2013? In a number of ways, if buyers need a program such as 100% financing then they may decide not to look at homes for sale in Riverwood, Chandler’s Ridge, Cobblestone and focus their home search on Flowers Plantation, Southwick Farm, Crystal Creek or neighborhoods like Tralee in Smithfield or Wellington and Terrace Ridge in Angier, both areas that are are already experiencing growth and the builders are reacting to it.. Home sellers will be under pressure to pay more closing costs if the homebuyer is having to come up with a down payment. Resale homes in Clayton are in serious competition with new construction these days as larger builders have moved into the area and are able to sell new homes often for less than a lot of homeowners can sell their homes for.
Is Now The Time To Buy?
Is Clayton going to lose it’s USDA Loan eligibility? It appears that unless there is Congressional Action to extend the current eligibility then homes for sale that are in the town limits of Clayton, NC will no longer be considered eligible for the USDA Rural Development Home Loan Program. Don’t wait to sell or buy a house in Clayton find out if you are eligible for this great program before it goes away. Choose a mortgage professional that understands the programs that are available to homebuyers in the Clayton area.
When you apply for a mortgage to buy a home in Clayton, NC make sure you choose a professional Loan Officer who has done USDA Loans before and can explain all your mortgage options.
If you are thinking of buying a house in Clayton this year, now’s the time to do it if you want 100% financing. Call or email me I know these neighborhoods well.