USDA Loan Guarantee Fee Increase
UPDATE ISSUED- TAKE A LOOK AT THIS POST.
Effective October 1st, the USDA loan guarantee fee will be increasing from 2% to 2.75% for the upfront premium. The USDA loan guarantee monthly premium will remain at .5%.
The upfront USDA loan guarantee fee is the equivalent of FHA’s upfront mortgage insurance premium, VA’s Funding Fee or Private Mortgage Insurance (PMI) on conventional loans with less than 20% down.
Let’s compare the different programs
Min Down Payment
2.15% first time use
3.3% subsequent use
Zero if receiving VA disability
No monthly premium
Zero Down for loan amounts up to the county limit
None unless using single premium coverage
Varies based on down payment and credit score
VA is by far the best option for anyone who is eligible for it. The lack of monthly premiums makes the payments much more affordable.
- Owner occupied loans only
- Meet income eligibility guidelines
- Be a US Citizen or permanent resident alien
- Property must be in an eligible area
- Meet underwriting guidelines contact me for specifics
USDA Loans are an excellent choice for those of you who like to live outside of the city and would like to purchase a home with no down payment.
Ready to make your move? Contact me for a free full pre-approval and a referral to a local Realtor