USDA CHANGES COMING IN OCTOBER 2016
USDA has announced some positive changes coming in October 2016. USDA or Rural Housing is a great product offering 100% financing on properties in certain census tracts. There are income limits and the property cannot be lavish. All household income is counted even if there is only one occupant on the loan. So, you need to know the guidelines. It is a great product for someone with little down payment money.
EFFECTIVE IN OCTOBER 2016 THE UP FRONT FUNDING FEE WILL DROP TO 1%. Currently it is at 2.75%. The up front fee is added right onto the mortgage increasing the loan amount.
EFFECTIVE IN OCTOBER 2016 THE MONTHLY PMI WILL DROP TO .35%. Currently it is at .50%. There was a time when there was no monthly PMI (private mortgage insurance) factor; those days are gone. Even at .50% it is considered low, but .35% will be even better!
So some positive and welcome changes coming for USDA in October. When someone buys in a USDA census tract, we always consider this program. Soon it will be even better!