Friday, September 7, 2012

USDA is changing Eligibility areas and fee structures for Rural Development Loans in Kentucky beginning Oct 1, 2012



  

We have received notification that there will be area eligibility changes. There are several areas that are scheduled to become ineligible effective 10/1/2012 due to the 2010 Census; however, USDA has not received an official notification at this time. 

Good news! The Single Family Housing Guaranteed Loan Program (SFHGLP) will have ample purchase funding available through September 30, 2012.

  
Not so good news: With the new 2013 fiscal calender, October 1, 2012, purchase funds will not be available for approximately 2 weeks or longer after the new fiscal year begins. During this time, RD will issue Conditional Commitments "subject to the availability of commitment authority." The FY 2013 upfront guarantee structure of 2% annual fee and a .40% will apply. 

For example $100,000 loan amount, you will divide .98% = $102,040.81, but round to $102,040 for your loan. To find the USDA guarantee fee take $102,040-100,000 = $2,040 (a little higher than 2%)

To calculate the annual fee take the full loan amount $102,040 x .004 = $408.16 is your annual premium divide / by 12 = $34.01 for the monthly fee needed to add in the payment.
  


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