Get Into A Better Home With Upcoming USDA Improvements!

The USDA has announced significant cuts to both the up-front funding fee and the monthly mortgage insurance factor for loans that receive a conditional commitment from USDA on and after October 1st (when the 2017 fiscal year starts).  These changes are as follows:

  • Up-Front Funding Fee:  Currently 2.75%, will be reduced to 1.00%.
  • Monthly MI factor:  Currently .50%, will be reduced to .35%.

Borrowers will be able to save roughly $20/month for every $100,000 borrowed - which will allow for the potential for them to look at a slightly higher price range, or simply a more affordable payment.

So as you are looking to get pre-qualified and are in the market for a Rural Housing loan, make sure to take these upcoming factors into consideration as they could have a significant impact for you.

One final thing - there will be NO changes to eligible areas when fiscal year 2017 begins!

Have questions? Ready to get started? Be sure to contact your local mortgage specialist today. Search for one HERE by name or find the closest office to you HERE.