Monday, October 17, 2016

USDA Loan Fees Have Been Reduced!

As of October 1, 2016, both the upfront “USDA Guarantee Fee” and monthly fee for purchase and refinance loans decreased.   The upfront Guarantee Fee was reduced from 2.75% to 1% and the monthly fee decreased from .50% to .35%. 

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The comparative savings for your USDA buyers in the chart below are based on a sales price of $150,000 and today’s 30-year fixed USDA interest rate of 3.250%.


OLD
NEW
Loan Amount
$154,241

* $150,000 purchase price +
2.75% Upfront Guarantee Fee
$151,515

* $150,000 purchase price +
1% Upfront Guarantee Fee
Total Estimated Mo. Payment
$984.95

* includes estimated real estate taxes & homeowners insurance
$953.19

* includes estimated real estate taxes & homeowners insurance


BENEFITS OF USDA FINANCING:
·         No money down / 100% financing
·         No purchase price limit or maximum loan amount
·         St. Louis County & St. Charles County Income limits for households of 1-4 occupants = $80,920;  5+ occupants = $106,850

Did you know....?

Flat Branch Home Loans is the second largest provider of USDA financing in Missouri.  Our expertise with this loan product and eligibility has made Flat Branch Home Loans a top choice for buyers who want a smooth loan transaction with no surprises or issues.

The seller can pay up to 6% of the sales price to cover closing costs and escrow fees at closing for a USDA buyer.  This allows a USDA buyer to purchase a home with little to no money out of pocket on the day of closing.

Buyers must purchase in a USDA-eligible area. Some areas of St. Charles County are eligible for USDA financing.  To determine if a property is eligible you can visit USDA’s eligibility site by clicking here.


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Amy Hess
Senior Mortgage Banker
Flat Branch Home Loans
16150 Main Circle Dr. Suite 220
Chesterfield, MO. 63017
Work: 314-872-0998 ext. 2586 | Mobile: 573-291-2704 | Fax: 314-219-8575
NMLS ID: 58000 | Company NMLS: 224149
ahess@flat-branch.com | flatbranchhomeloans.com
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