USDA Has Funds Available For Home Financing
There has been a lot of discussion and anticipation as to when Congress would re-appropriate funds for the USDA loan program and when it would come back. Effective on June 1, 2010, USDA released its program to lenders under new conditions that would affect a homebuyer’s decision. It will also affect how much buyers can purchase based on their DTI (Debt to Income) ratio.
The following are the major changes to the USDA Guaranteed Rural Housing Loans program
- First: The USDA Funding Fee is no longer 2.00% (two percent)
- Second: The “NEW” USDA Funding Fee is 3.50% (three and a half percent)
- Third: The GUS System (Guarantee Underwriting System) is currently turned off. This means that the homebuyer’s qualification will be strictly adhered to the USDA Guidelines.
Until further notice from the USDA, the program will be manually underwritten, meaning the underwriter is responsible for all the checks and balances provided by the USDA’s guidelines. GUS will not be utilized to determine a homebuyer’s credit & income qualifications.
For more information, please contact us at 480.344.3671