Good Morning!
I wanted to let you know about some upcoming changes on the USDA loan program.
Right now the upfront mortgage insurance fee paid at closing is 3.67% on a USDA loan. …Starting October 1st, 2011 this upfront fee will go down to 2%.
However, currently there is no annual mortgage insurance paid on USDA loans – this will change.
Starting October 1st, 2011 there will now be 0.3% mortgage insurance fee paid annually on all USDA loans.
What this means is your initial loan amount will be lower on USDA loans, but your borrowing power will go down on USDA loans due to the extra annually MI fees.
So, if you thought about getting a USDA loan I would do it now. …because staring October 1st you won’t be able to borrower quite as much money as you could before October 1st.
I hope you have a good day today. Thanks for reading!
Brett
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