USRDA Loans & Underwriting

A little known issue that is popping up in regards to using this loan for housing in the local Ephrata area is throwing a wrench in some sales. So buyer beware when using this loan program that your costs for obtaining the loan might be higher then you think.

Because of the fact that Downtown Ephrata is within a flood zone obviously you have to obtain flood insurance which can cost you an extra $800 or more prior to closing.  Along with this however, is the requirement that USRDA requires housing within a flood zone to also have a survey of the flood zone and where the house is sitting to verify that the home is 12 inches above the flood path.  If the home is not above the 12 inches they will not loan on that particular piece of property.

This survey is going to cost you an additional $500-$1000 from a local engineering company.  Don’t be caught unaware in the middle of the transaction with additional costs that can keep you from buying your dream home.