On March 16, 2018, the U.S. Department of Agriculture (USDA) made available the proposed newly ineligible area maps for Rural Development Single Family Housing and Multi-Family Housing programs, including Section 502 rural housing loans. The “Proposed Ineligible Areas” maps show all ineligible non-rural areas, and not only the new non-rural areas. In some cases, previously ineligible areas will now become eligible rural areas. The new ineligible areas will become effective on June 4, 2018.
For properties in an area that will become ineligible on June 4, 2018, it may be possible to close on properties using Section 502 loans after the date if:
- A complete loan application is received before June 4, 2018 that meets all other eligibility requirements
- A loan application was fully completed prior to June 4, 2018
- Conditional commitments were issued prior to June 4, 2018