USDA Rural Housing Loans Increasing Monthly Mortgage Insurance October 1, 2014
USDA Rural Housing Loans will be increasing the monthly mortgage insurance premium that is charged beginning on Guarantee Commitments assigned on or after October 1, 2014, as announced by Rural Development. The monthly premium charged is currently based on an annual premium of 0.4% of the principal balance of the outstanding loan. The annual premium is increasing to 0.5% effective with commitments issued on or after October 1, 2014. It doesn’t matter if the loan application or the sales contract was dated prior to October 1, 2014.
For Delaware and Maryland USDA Rural Housing Loans, this is an extremely important update because anybody who is currently under contract and the file isn’t currently in line to be reviewed by Rural Development, there is no way to make it by October 1, 2014 as the current turn time for review by Rural Development is 30 business days which is very close to 45 calendar days.
The annual premium is re-calculated every 12 payments so the monthly insurance premium will go down each year of the loan but it will never drop off, it is for the life of the loan. The upfront guarantee fee is currently 2% of the loan amount and it will not be changing on October 1, 2014.
If you have questions or concerns or would like to apply for a USDA Rural Housing Loan for the purchase or refinance of a home in Delaware, Maryland, or Pennsylvania, then give us a call at 302-703-0727 or Apply Online
If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713