News from USDA, Rural Housing

Finally news from USDA, Rural Housing has arrived.  USDA released a letter dated August 23, 2010 to mortgage lenders saying Congress has given USDA the authority to increase the upfront fee to 3.5 percent of the base loan amount and to charge an annual fee of .50%.  Think of annual fee as monthly mortgage insurance.

 

This news from USDA, Rural Housing, which applies to the Single Family Housing Guaranteed Loan Program, says the new 3.5 percent upfront fee will start immediately.  They stated this new increase will maintain the program at a zero cost for now.  The annual fee, again which means monthly mortgage insurance, will not be added at the present time, but it will be added at a later date when needed to keep the program at a zero cost to the tax payers.

 

The letter did say they will "waive payment of any fees for low and very low income borrowers up to a certain amount of loan guarantees."

 

Contact Shay Campbell, a licensed loan originator in North Carolina., for more information about USDA, Rural Housing loans.