USDA Fees to Increase…..tomorrow!

September 30, 2014 — Leave a comment

USDA zero downFiscal Year End Conversion Process Due to Increase in Annual Fee

On October 1, 2014 the annual fee for both purchase and refinance loans will increase from .4% to .5%.  This change is required to maintain a neutral cost of the program. The USDA annual fee is paid monthly as part of your USDA mortgage payment. For more info on USDA loans in an easy-to-understand short article please Click Here.

Fee Increase Example:

Your new USDA loan originated after October 1, 2014, is for $120,000. The annual fee of 0.50% equates to $600 owed to USDA your first year. The $600 is divided by 12 and paid monthly as part of your USDA payment = $50.00 monthly.

Curious if the home you’re looking at is eligible for USDA financing?  Find out by clicking here!

Here is the publication from USDA’s site – click here!

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