Looking to purchase a home with 100% USDA Rural Mortgage? Florida home buyers may want to take note of some big changes coming Oct 2014.
- USDA is set to revise the approved eligible location map 10/1/2014. What does this mean you might ask? Basically many locations that are currently eligible for the program will not be after Oct 1st. Keep in mind the USDA approved eligibility map has not been updated in many years, so a change is long overdue. Homebuyers that are interested in the no money down USDA loan should take note. This is especially important for any homebuyers looking to purchase a home outside of the major cities like Jacksonville, Orlando FL, Tampa, Tallahassee, Gainesville, Lakeland, Ocala, Sarasota and Naples. UPDATE – As of 10/2/2014 – the USDA map change has been delayed by USDA until 12/11/2014. Please continue to use the original maps.
- Also USDA loan mortgage insurance is going up! Effective October 1, 2014, the monthly mortgage insurance on a USDA loan will increase to .50%. This is up from the current .40%. EX:$100,000 loan amount, the new mortgage insurance costs would be $41.87 a month, up from the current $33.49 a month. While none of us like increased costs, USDA mortgages still have the lowest mortgage insurance costs of any home mortgage program, and is still a great value. FHA loans as one example require 1.35% for monthly mortgage insurance…. Nearly three times higher.
Questions? Just send the info request form on the right side → or call ph: 800-743-7556. Also be sure to click over to www.usdamortgagesource.com
USDA Loan Program Changes Oct 1st