Special Real Estate Report 
USDA Lowering Fees

 

Borrowers who use the U.S. Department of Agriculture’s Rural Housing Service to get a home loan could soon pay significantly less for their loan, as the USDA announced that it is about to cut its loan fees for lenders who use the USDA’s Single Family Housing Loan Guarantee Program. In an announcement sent to lenders, the USDA said that it is cutting its fees beginning on Oct. 1, 2016, the first day of fiscal year 2017.

 

According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.50% of the unpaid principal loan balance to 0.35%. So, what’s the reason for the cut? Better borrower performance, according to a USDA official.

 

According to the official, the USDA is able to cut its upfront and annual fees because borrower delinquency and foreclosure rates have reached “historic lows” since the beginning of the housing crisis. Additionally, the official said that successful partnerships between the USDA and the lenders who participate in its loan programs have resulted in “very strong” performance within this program.

 

“When our borrowers succeed, the program succeeds,” USDA Rural Housing Service Administrator Tony Hernandez said in a statement provided to HousingWire. “Excellent overall performance in our Single Family Housing Guaranteed Loan Program means we can charge less for the life-changing opportunity to own a home.”

 

Source: HousingWire

About Us 
McLean Mortgage Corporation has become a Mid-Atlantic regional powerhouse by building a team focused upon helping customers realize their real estate financing needs with minimum stress and maximum results. Realtors and customers know they can count on us to close their loans on time.
LoanFirst 
The LoanFirst™ program is designed to give homebuyers an edge in a competitive purchase market. LoanFirst™ should be the first step in purchasing a home.
RateFlex 
Worried about rates increasing? Ask me about RateFlex™ which gives borrowers rate protection if rates go up AND offers a lower rate if rates decrease before closing.

 

TJ Kuczewski
Mortgage Advisor
NMLS#1131567
Direct: (571) 419-6627
tj@mcleanmortgage.com
www.tjkmortgage.com
McLean Mortgage Corporation Logo