USDA changing Loan Guarantee costs!
Effective October 1, 2011 USDA is making two changes to their Loan Guarantee costs.
First the good – the Up-Front Loan Guarantee fee is being reduced from 3.5% to 2.0%
Now the bad – like FHA, they will start charging monthly mortgage insurance at an annual rate of 0.30% (FHA currently charges 1.15%)
Loans that do not have a “Conditional Commitment” by Sept. 30, 2011 will fall under the new fee guidelines – NO EXCEPTIONS!
INFORM YOUR CLIENTS ! If they are buying a newly built home, make sure they request their Lender to have their Guarantee Fees locked in.
Any questions? As always, I’m here to help!
Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363)