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.