USDA to Lower Lending Fees

Filed in Housing Finance by on September 6, 2016 1 Comment

REPID PERCENT DECREASE

The Department of Agriculture (USDA) has announced that lenders who use the USDA’s Rural Housing Service’s (RHS) Single-Family Housing Guarantee Program will pay lower fees beginning on Oct. 1, the first day of fiscal year 2017.

The upfront fee will be reduced from 2.75% of the loan-at-close amount to 1% while the annual fee will be lowered from 0.50% of the unpaid principal loan balance to 0.35%. These fees are usually passed on to borrowers, so RHS borrowers should also benefit from lower loan fees.

In announcing the cuts,  USDA RHS Administrator Tony Hernandez said the fee reductions were made due to better borrower performance. Specifically, he said that borrower delinquency and lower foreclosure rates have reached “historic lows” since the beginning of the housing crisis.

See the USDA notice.

For more information, contact Curtis Milton at 800-368-5242 x8597.

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  1. Take a moment to learn about these affordable loans that may be applicable to your perimeter metropolitan market place. The loans were created to keep the rural population in rural U.S. cost effectively rather than lose population to the larger populated counties, parishes, cities and towns!
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