USDA changes to PMI coming soon!

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.