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
Monthly
Upfront Premium
Monthly Premium
Min Down Payment
USDA
2.75%
.5%
Zero Down
VA
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
FHA
1.75%
.85%
3.5%
Conventional
None unless using single premium coverage
Varies based on down payment and credit score
3%
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.
And speaking of eligibility, let’s take a look at 
the eligibility criteria for USDA Loans
- 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