On October 1st, the USDA is making drastic cuts to fees for Kentucky Home Buyers Using the Rural Housing Guaranteed Program
On October 1st, the USDA is making drastic cuts to fees The USDA mortgage requires two types of fees: an upfront guarantee fee and a monthly fee. They are both being reduced, allowing more buyers to qualify. Starting on October 1, 2016, the upfront fee will be reduced. Current upfront fee: 2.75% New upfront fee: 1.00% and the monthly fee will also drop. Current annual fee: 0.50% New annual fee: 0.35% The term “guarantee” simply refers to USDA’s loan backing that allows lenders to issue loans according to its guidelines. The current upfront guarantee fee stands at 2.75 percent of the loan amount and is seeing a drastic cut to 1.00 percent , a nd the "annual fee" is currently 0.50 percent also dropping significantly to 0.35% , paid in twelve equal installments and included in each mortgage payment. The changes will be in effect until September 30, 2017. Typically, USDA re-examines financials of previous fee changes then raises, holds, or reduces fees acc...
