Special offer

USDA changes to PMI coming soon!

Mortgage and Lending with Annie Mac Home Mortgage NMLS ID 19375


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.



The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, "Conditional Commitment for Single Family Housing Loan Guarantee") issued by Rural Development on or after October 1, 2012. Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment

has not been issued, will be subject to the FY 2013 fee structure.


Diane Daley
Caron's Gateway Real Estate - Northumberland, NH

Knew this was coming down the pike... still not sure why with the state of the economy...


Aug 15, 2012 01:12 AM
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Good morning Jeff. RD still is a big hitter here in Michigan but we are only a few Government Tweaks away from the next roadblock.

Aug 15, 2012 01:41 AM