Great news today from USDA Rural Housing in regards to the one-time upfront guarantee fee, and the annual (monthly PMI) fee. These USDA loan fees are going to reduced across the board starting 10/1/2016. This reduction will apply to both purchase and USDA refinance transactions and will stay in place until September 2017.
USDA Guarantee Fee Reduction October 2016: Example of saving for a buyer purchasing a $175,000 home.
Guarantee Fee Savings ( amount of overall closing costs reduction) = $3,062.00
Monthly Mortgage Payment Savings = $37.00 per month.
The USDA upfront guarantee fee and annual fee structure that will be effective for Single Family Housing Guaranteed Loan Program (SFHGLP) loans in fiscal year (FY) 2017, which begins October 1, 2016 and ends at the close of business on September 30, 2017. The upfront guarantee fee will be reduced from 2.75% to 1.0% of the loan amount. The annual fee will be reduced from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan.
This USDA fee reduction is great news for first time home buyers that often have little money to put down on a home. The USDA mortgage is still 100% financing with secure 30 year fix rate terms.
Questions about USDA 502 Guarantee Loans? Please contact USDA Mortgage Source at ph: 800-743-7556 or visit www.UsdaMortgageSource.com We serve buyers across the nation 7 days a week.
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