USDA Rural Development loans will have slight increases to PMI soon. As of October 1, 2012, the start of Fiscal Year "FY" 2013, Rural Development will revise the Up-Front Guarantee and Annual Fee Structure as follows: For Purchases, the 2% guarantee fee remains the same. For Refinances, the fee goes from 1.5% to 2%. The monthly (Annual PMI) will increase on both purchases & refinances from .30% to .40%. Even with these increases, the USDA program remains one of the most attractive loan programs available with zero down, and low monthly PMI.
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