New USDA Rural Housing guidelines and funding fee increases are coming , but we see no reason to stop processing and approving these loans. The funding fee will rise to 3.5% of the mortgage amount to strengthen the insurance fund and reduce the number of times the USDA has to lobby Congress for more money. This fee can still be rolled into the mortgage, making Rural Development the most economically attractive way to purchase a home.
There are re-drawn county maps proposed, that will change the areas of availability. I will post additional details of the program on my blog as details come out but rest assured, we are still doing USDA loans!