In an attempt to remove the need for taxpayer support to fund the USDA Rural Development Program, the U.S. Government has proposed changes to the Washington State USDA Rural Development Home Loan Program that will impose a permanent monthly mortgage insurance premium on all USDA home loans.
Currently, home buyers qualifying for a Washington State USDA Home Loan pay a 3.5% USDA Upfront Guarantee Fee, but do not have to pay a monthly private mortgage premium (see below for a side-by-side comparison). It appears as though the United States Department of Agriculture is following in the shadows of their counterpart the Department of HUD (or FHA).
The most common question that Washington State Real Estate agents and builders are asking is,
“How will these changes affect our local housing market and the ability for a home buyer to qualify for the USDA Loan Program post October 1, 2011?”
This is a great concern as many real estate agents and builders rely on the Washington State USDA Home Loan to assist their clients in financing homes.
Below, I’ve put together a side-by-side comparison breaking down how the proposed changes will affect a borrower’s monthly payment. Based on the numbers below, a difference of $53.24/month is equivalent to a decrease in a borrower’s purchase power in the amount of $10,507. <—— That is profound…
Washington State USDA Resource Center
If you are a home buyer looking for more information on qualifying for a Washington State USDA Home Loan, you may want to visit my USDA Resource Center where I explain qualifying credit scores needed, the Washington State maximum household income guidelines, along with property eligibility guidelines required to property to be eligible for USDA financing. CLICK HERE For more Information!
If you are a builder or Realtor, you can click on the above-mentioned link for more information to assist you in marketing the sale of your homes, along with being able to refer your clients to an all-inclusive resource for Washington State USDA Home Loans. For example, you may find some valuable information here on Buying New Construction with USDA Financing – See how home buyers are using the Washington State Home Loan to finance new construction in the Marysville Meadows.
Please feel free to contact me directly at (425) 350-7136 for a current USDA 30-year Fixed Rate Quote. You can also click on the link below to see if you qualify for a USDA Home Loan. My Team and I will quickly contact immediately to go over your credit application and USDA Mortgage Pre-Approval! You can also preview the formal press release from the Dept. of USDA – RD AN No. 4551 (1980-D) USDA Annual Fee and MI Change Oct2011