USDA to change loan requirements on 10/1/11
USDA will be changing their upfront mortgage insurance and adding monthly
mortgage insurance (PMI) as of October 1, 2011.
If you are trying to get approved for a USDA loan, please have it
signed/approved before this date. This could affect whether or not a
client will qualify. See below!
IMPLEMENTATION RESPONSIBILITIES:
Beginning October 1, 2011, it is anticipated that all purchase loans
transactions will be charged:
(1) an up-front guarantee fee equal to 2 percent of the loan amount
(2) an annual fee of 0.3 percent of the unpaid principal balance.