We have seen about 8 years of tightening guidelines and increased borrower costs. Are you ready for a change? USDA is giving us just that! Beginning October 1st, 2016, USDA is lowering the Guarantee Fees. (Mortgage Insurance) The upfront guarantee fee is being reduced from 2.75% to only 1.0%.
But wait! It gets better. The annual 0.50% fee paid each month with your house payment is being reduced to 0.35%.
On a $200,000 home, this equates to about $3,500 lower loan amount and about $25 per month lower payment. Thank you USDA!!
USDA is a rural community loan program that offers 100% financing with no down payment or borrower investment required. It is not restricted to first time home buyers but you typically cannot own another home. www.oneray.com/USDA