Newly designated rural areas take out Bryant for 100% financing USDA loan

Under the proposed changes presented by the United States Department of Agriculture/Rural Development, effective October 1, 2012 the following areas that have been previously considered as rural by USDA Rural Development will become ‘non-rural’ and therefore will not be eligible for Single Family Housing assistance with USDA Rural Development (100% financing).  The areas are as follows:

Bryant, AR, Hot Springs Village (In Saline and Garland Counties), Alexander, Salem, and Shannon Hills.

This means that if the changes are approved, the buyers in the above markets will NOT be able to use the 100% USDA financing program anymore.  We have seen a large growth in Bryant and Alexander because of the 100% financing available, but because of this growth, this area may not longer be classified as ‘rural’.

If you are considering buying or selling in these areas, my recommendation is to do it before October 1, 2012.  If a buyer, you will not be able get 100% financing.  As a seller, the buyer demand will be lower, which usually means a lower sales price and longer days on market.