As of October 1, 2011 all USDA mortgage loans in Colorado will be required to pay an annual fee of 0.30%. USDA announced the change in March of this year, and is the first time the USDA rural housing mortgage program has ever charged an annual fee (similar to mortgage insurance). One important difference between Colorado FHA mortgage loans and USDA mortgage loans is, the annual fee from USDA is for the life of the loan, regardless of your loan-to-value. While USDA mortgage loans will now require a 0.30% annual fee, USDA is lowering the upfront fee from 3.5% to 2%. The upfront fee can be financed in the mortgage.
Even though the changes in the USDA mortgage loans in Colorado are not effective until October 1st, mortgage lenders must deliver closed and funded loans to USDA by this date. Therefore, most Colorado mortgage lenders are implementing their own dates for USDA loans to close. If you are purchasing a home in Colorado and plan on obtaining a mortgage loan it’s important to contact your mortgage lender and know when you must close to avoid the changes.
Read more about USDA mortgage loans in Colorado or feel free to Contact Us with any questions or to pre-approve for a USDA mortgage loan in Colorado.
Originally Posted on Colorado Homes IQ Blog.
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