USDA Will Have Monthly Mortgage Insurance starting October 1, 2011

Reblogger Marilyn Boudreaux
Real Estate Agent with Marilyn Boudreaux, Century 21 Bono Realty 0912122870 LA

I am re-blogging this information from John Cannata  a loan officer in Frisco Texas because Rural Development Loans are  also very popular in Lake Charles, LA.

The change John refers to that is coming October 1 will be an annual fee USDA charges based on the loan amount.  100% Rural Development finanacing is a great option for many Lake Charles buyers searching for homes in Southwest Louisiana.   Craig Boudreaux of Louisiana Mortgage Associates in Lake Charles can give you information on  eligible areas, in  Lake Charles, Moss Bluff, Westlake, Carlyss and Iowa, LA. 

There are alot of properties listed that qualify for Rural Development Financing, please visit my website www.marilynboudreaux.com for more information I look forward to assisting you!

Original content by John Cannata NMLS # 322646

USDA Will Have Monthly Mortgage Insurance

USDA Rural Development and its loan program were designed to help improve the economy and quality of life throughout rural America. The program continues to remain a wonderful option for qualifying homebuyers, with zero down payment required.

But a change is coming!

Beginning October 1, 2011, for the first time in the history of USDA, the Single Housing Guaranteed Loan Program will have an annual fee. This fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan.

If you're thinking of purchasing a home and you're wondering if you may qualify for a USDA loan, give me a call right away. Home loan rates are still very attractive. Let's see if this program is right for you...before the October 1 fee begins.

 

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Are you looking to purchase a home in Texas?  Perhaps you love your home in Texas but would be interested in refinancing your mortgage to a lower interest rate?  

I'll help you get pre-approved for your a new home loan in Texas and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage / Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Mortgage Consultant

Frisco TX Mortgage

      

The views expressed on this site are mine alone and do not reflect the views of my employer.

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Rainmaker
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Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Excellent, reblog, Marilyn.  I missed the original and none of my trusty loan officers have sent me the recent update, even though we, too, use the USDA loans for quite a few areas very near Phoenix. 

May 17, 2011 01:55 PM #1
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Marilyn

That's good news, the USDA is a very good mortgage program.

Good luck and success.

Lou Ludwig

May 17, 2011 03:31 PM #2
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Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

Marilyn,

 If you "know someone in the mortgage industry", I would love to see what the fee would look like based on a 100k sales price.

May 17, 2011 03:40 PM #3
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Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

Doug, I spoke to a loan officer who shared this with me:

RD will lower the up-front guarantee fee from 3.5% to 2% and they are adding a monthly fee similar to monthly mortgage insurance. That factor is .3. that equates to $2000 up-front guarantee fee and $25 monthly fee. The catch is the monthly fee is for the life of the loan. But at $25 on $100,000 loan, that is not big deal. they have not finalized this yet, but usually they do exactly what changes they propose.

 

This really only added $16 per month to the house note when you compare old way vs. new way using your example of $100,000.   MI on FHA is much higher on a 30 yr loan term, that one is 1.15 factor.

May 18, 2011 05:17 AM #4
Rainmaker
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John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Thanks for the RB Marilyn. I hadnt noticed earlier. I'm curious to see if any additional changes will be made prior to October 1st. Hopefully not, but you never know lately. As you mentioned, it does not appear to be a large increase at this time. But when you are use to no fee for so many years, then its a bit of a change considering this new fee is for the life of the loan.

May 18, 2011 07:06 PM #5
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