I am passing along some information to you concerning the Rural Housing Loan which I received from Rock Reber with Academy Mortgage.
The USDA has announced changes to the Single Family Housing Guaranteed Loan Program (per A.N. 4551, dated 2/3/11) with the implementation of a new annual fee for the life of the loan, and decreasing the up-front fee for all conditional commitments receices on purchase transactions on or after 10/1/2011. The purpose of this change is to eliminate the need for tqaxpayer subsidy of the program.
This means that if you qualify for a Rural Housing Loan, your up-front fee will be only 2% rather than 3.5% but you will pay an annual fee on your mortgage of .30% of the outstanding principal balance. For example, on a loan with the principal balance of $100,000, the new annual fee would be $300.
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