USDA FEE INCREASE... AGAIN! Sorry I don't mean to yell but then maybe I do. See the bulletin from Rural Development below but the new Upfront Guarantee Fee will be 2.75% up from 2% and the Annual Fee will remain the same at .5%. This change will go into effect on October 1st, 2015.
Keep in mind there are other low down financing options such as the VA Loan for qualified Veterans, FHA, or Conventional with private mortgage insurance that may be a better fit. A side by side comparison will guide you in choosing the right home loan based on your individual needs and goals. If you would like more information or to apply for any of these loan products contact me today!June 25, 2015Advance Notice:Upfront Guarantee Fee and Annual Fee for Fiscal Year (FY) 2016This message provides advance notice of the upfront guarantee fee and annual fee structure that will be effective for Single Family Housing Guaranteed Loan Program (SFHGLP) loans in fiscal year (FY) 2016. FY 2016 begins October 1, 2015 and ends at the close of business on September 30, 2016. The upfront guarantee fee will change from 2 percent of the loan amount to 2.75 percent of the loan amount. The annual fee will remain unchanged.Guaranteed loans obligated on October 1, 2015, through September 30, 2016 will be subject to the following fee schedule:Purchase and Refinance Transactions:Upfront guarantee fee: 2.75 percentAnnual fee: 0.50 percentA loan is obligated when USDA has approved a complete loan application package and issued Form RD 3555-18 “Conditional Commitment for Single Family Housing Loan Guarantee” to the USDA approved lender. Loan guarantee requests submitted to USDA prior to September 30, 2015, in which a Conditional Commitment has not been issued before close of business that day, will be subject to the FY 2016 fee structure.The unnumbered letter “Upfront Guarantee Fee and Annual Fee Schedule Effective October 1, 2015” is available under “June 2015” online at: http://www.rd.usda.gov/publications/regulations-guidelines/unnumbered-letters.A “Guarantee Fee and Annual Fee Calculator” is available online from the USDA LINC “Training and Resource Library”: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do#GAF.Questions regarding this notice may be directed to Kristina Zehr, at (202) 713-8779 or via email: firstname.lastname@example.org. The Single Family Housing Guaranteed Loan Division may also be contacted at (202)-720-1452.