Most every USDA lender will be temporarily halting USDA originations ahead of the pending fee changes that will become effective October 1st, 2011.
These changes include the following:
1. Up front funding fee will be reduced from 3.5% to 2% for purchases, and 1% for refinances.
2. The addition of a monthly loan fee of .30% will be added to the program.
USDA lenders will need time to set-up systems to handle the new fee structure and, from what we have been reading, this will take between 2 and 4 weeks to accomplish. For current files in process there will be no impact of the new fees. If you have additional questions please call or email us.
No comments:
Post a Comment