Properties in all of Sussex County, DE may qualify for 0% down USDA guaranteed rural housing financing and we are a provider of these loans. There are income limits and stricter qualification standards than an FHA loan for example, and these loans are only available for a primary home buyer.
Effective today, The USDA guarantee fee and annual fee are significantly reduced. See this announcement:
“Borrowers who use the U.S. Department of Agriculture’s Rural Housing Service to get a home loan could soon pay significantly less for their loan, as the USDA announced that it is about to cut its loan fees for lenders who use the USDA’s Single Family Housing Loan Guarantee Program. In an announcement sent to lenders, the USDA said that it is cutting its fees beginning on Oct. 1, 2016, the first day of fiscal year 2017.
According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.50% of the unpaid principal loan balance to 0.35%. So, what’s the reason for the cut? Better borrower performance, according to a USDA official. According to the official, the USDA is able to cut its upfront and annual fees because borrower delinquency and foreclosure rates have reached “historic lows” since the beginning of the housing crisis. Additionally, the official said that successful partnerships between the USDA and the lenders who participate in its loan programs have resulted in “very strong” performance within this program.”
“When our borrowers succeed, the program succeeds,” USDA Rural Housing Service Administrator Tony Hernandez said in a statement provided to HousingWire. “Excellent overall performance in our Single Family Housing Guaranteed Loan Program means we can charge less for the life-changing opportunity to own a home.”