USDA Guaranteed Loan Guarantee Annual FeesDate: February 3, 2011
Questions or Comments Regarding This Information?
Effective October 1, 2011 USDA Rural Development will make the following changes to the Guaranteed Housing Loan Guarantee Annual Fees:
|Purchase transaction Guarantee Up-front Fees will decrease from 3.5% to 2.00%|
|USDA will adopt an initial annual fee of .3% of the unpaid principal loan balance for the life of the loan|
|The Guarantee Fee on refinance transaction remains unchanged at 1.00%|
The purpose of this change is to ensure that USDA Guaranteed Loan Program remains "budget neutral" or self-funding without any government funding or assistance.
The annual fee of .3% will be based on the outstanding balance of the loan, at the anniversary date of the loan origination, and collected based on an annual period. The .3% will be charged for the life of the loan.
To learn more about your USDA Loan financing options through the USDA Rural Development Loan Program complete contact form or call (866) 747-2882 to speak to your USDA Loan Professional.
|USDA Funding Update - Fiscal 2011|
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