Well USDA Guaranteed Rural Housing just got a whamy... all in the same day!
Purchasing Power is changing....
Please find attached a notice outlining two very important changes that are scheduled to take effect with loans obligated on or after October 1, 2011. The changes are as follows: (1) An annual fee of 0.3 percent will be charged on all loans obligated on or after this date (this means that USDA will now essentially be charging mortgage insurance and calling it something else); and (2) The up-front guarantee fee for purchase loans transaction will decrease from 3.5 percent to 2 percent of the loan amount. Please note these changes will not be effective until October 1, 2011.
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