USDA Loan program changes effective 10/1/12

By Todd Abelson NMLS #180858 on .

USDA Announcement –

In a nutshell:

1. The Up-Front “Guarantee Fee” for purchases will remain at 2.0 points, and increase from 1.50 points to 2.0 points on refinances effective with all loans Certified after October, 1 2012.

2. There will be approximately a two-week gap in fundings from roughly October 1 – 15, 2012 (due to the start of the new government fiscal year).

PURCHASE LOANS:

The Single Family Housing Guaranteed Loan Program (SFHGLP) will have ample purchase funding available through September 30, 2012.

Fiscal year (FY) 2013 will begin on October 1, 2012. Purchase funds will not be available for approximately two weeks or longer after the new FY begins. During this timeframe, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority.” The FY 2013 upfront guarantee structure of 2 percent and an annual fee of .40 percent will apply.

REFINANCE LOANS:

Due to increased interest in the refinance feature of the SFHGLP, refinance funding was exhausted on August 21, 2012. Effective immediately, Rural Development will issue Conditional Commitments subject to the availability of Congressionally appropriated funds. The FY 2013 upfront guarantee fee of 2 percent and annual fee of .40 percent will apply. This notice is effective for all refinance transactions including Rural Refinance Pilot Program loans.

Call Todd Abelson for all your residential mortgage needs at (520) 331-LEND (5626)!