Rural growth around Valley could jeopardize home loans

With the 2010 census numbers out, Queen Creek, Maricopa, and San Tan Valley are expected to have outgrown their rural status - costing future homebuyers in those three communities their eligibility for U.S. Department of Agriculture rural-guaranteed loans that provide 100 percent financing. Some real-estate experts say the USDA guaranteed-loan program has helped boost an otherwise depressed housing market in the outer edges of the Valley. The census shows that Queen Creek has a population of 26,361, according to the USDA, while Maricopa has 43,482 residents and the San Tan Valley area, 81,321. The cutoff mark for rural designation for the USDA is 25,000. Dianna Jennings, a spokeswoman for the USDA in Phoenix, said those municipalities will still qualify for the guaranteed home loans until she is notified otherwise by headquarters in Washington, D.C.

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