USDA Loans in Texas are Changing 10/1/11, Monthly Mortgage Insurance will increase

Mortgage and Lending with - Legend Lending NMLS #293883

It has just been announced that USDA loans monthly Mortgage Insurance will be increasing on 10/1/11.  These changes apply to any case number ordered on 10/1/11 and after.  Currently USDA loans have no monthly mortgage insurance, but after 10/1/11 that will be increasing to .30.  On a $100,000 loan that will equal to a $25 increase in the borrowers payment.

On a positive note the upfront Mortgage Insurance Premium will decrease from 3.5% to 2%.  This move in by itself would decrease the payment by $8 a month. 

In the end,  on and after 10/1/11 USDA loans with have an increase in payment.  On a  $110k loan it will be an increase of about $17 a month.  Keep in mind that not only is this a small increase but USDA loans are also an amazing program.  They allow 0% down payment and the monthly mortgage insurance is still about 1/3rd of what the monthly mortgage insurance is for a FHA loan.  If you are buying a home located in a rural area, USDA loans are the best way to go.  To find out if a home qualifies for a USDA loan check out: USDA.  They do have income requirements for home buyers so call me today to see if you qualify for  a USDA loan. 


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David Krichmar 

Mortgage Banker NMLS#293883 

Legend Home Lending

LLC NMLS #229421

Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide

Appeared On Fox Business


Named 5 Star Mortgage Professional 2013, 2014, 2015, 2016, 2017

Named Top Mortgage Professional 2010,2011


For More Mortgage Info Follow me at  Dave's Blog


If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!  


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