USDA Loan Guarantee Fee Increase- UPDATE!

USDA Loans

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 USDA Mapthe eligibility criteria for USDA Loans

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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.