USDA has increased the upfront funding fee (aka “upfront guarantee fee”) by an additional 0.75 percent as of October 1, 2015. From USDA:
On October 1, 2015 the upfront guarantee fee for purchase and refinance loans will increase from 2 percent to 2.75 percent. The annual fee will remain at 0.50 percent for purchase and refinance loans. This change is necessary to maintain the program’s operational cost structure, which requires no congressional subsidy support to offset credit costs.
This fee is typically added to the USDA mortgage, similar to how FHA upfront mortgage insurance premiums are treated.
USDA mortgages do not require a down payment and are available to borrowers who meet the income limits. USDA is only available for homes located in what USDA designates as “rural”, like Arlington, Enumclaw, and North Bend.
If I can help you with a USDA (or any) mortgage for your home located in Washington state, please contact me!
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