Kentucky USDA Mortgage Loans get Drastically Lowering Costs for Buyers
USDA has announced that effective their Fiscal Year 2017 which starts October 1, 2016, that the USDA funding fee is lowering from 2.75% to only 1% for all Kentucky-backed USDA Rural Housing Mortgage loans! Plus the annual fee which is figured into the payment kind of like PMI is lowering from .50% to .35%!
Here's an example of the savings: The current funding fee on a $100,000 purchase would be about $2,50 financed on top of the loan but 1% would make it just a little over $1,000. That is a great savings, then there will be an additional lower payment because of the lower annual fee. For example on the monthly payment savings you are now looking at about an $14 monthly difference in your monthly payment.
Not only buyers looking for a no money down purchase at a great fixed rate can take advantage of this but also borrowers with a current USDA loan can use these features to refinance to a new USDA loan even with no appraisal.
Call us for questions/scenarios you have and approving buyers up-front or if you have an issue on a borrower.
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