{"id":1963,"date":"2016-09-09T19:34:32","date_gmt":"2016-09-09T19:34:32","guid":{"rendered":"http:\/\/riverbankfinance.com\/blog\/?p=1963"},"modified":"2016-12-08T21:32:26","modified_gmt":"2016-12-08T21:32:26","slug":"usda-lowers-upfront-and-annual-fees","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/usda-lowers-upfront-and-annual-fees\/","title":{"rendered":"USDA Lowers Upfront and Annual Fees for RD Loans"},"content":{"rendered":"<h2><span style=\"color: #000000; font-family: Calibri;\">USDA Lowers\u00a0Fees for RD Loans<\/span><\/h2>\n<p><span style=\"color: #000000; font-family: Calibri;\">Great news for homebuyers considering a <a href=\"http:\/\/riverbankfinance.com\/mortgage-programs\/usda-rural-housing-mortgage.html\">USDA rural development home loan<\/a> (RD Loan)! <\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0The already popular <a href=\"http:\/\/riverbankfinance.com\/mortgage-programs\/usda-rural-housing-mortgage.html\">zero down mortgage<\/a> is getting even better.\u00a0<\/span><span style=\"color: #000000; font-family: Calibri;\">The USDA announced this week that they will be decreasing both the upfront guarantee fee\u2014a closing cost which is financed into the total loan amount at close; and the annual fee\u2014the USDA version of PMI, which is paid monthly.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">Effective October 1<\/span><sup><span style=\"color: #000000; font-family: Calibri; font-size: small;\">st<\/span><\/sup><span style=\"color: #000000; font-family: Calibri;\">, the first day of fiscal year 2017, the upfront guarantee fee will decrease from 2.75% to 1%, and the annual fee will decrease from .5% to .35%.<\/span><\/p>\n<p><span style=\"color: #000000; font-family: Calibri;\">Now, unless you spend your spare time studying loan program guidelines, that might sound like gibberish\u2014so let\u2019s do some math to show the savings. <\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0<\/span><span style=\"color: #000000; font-family: Calibri;\">On a $200,000 home purchase, the upfront guarantee fee would decrease from $5,500 to $2,000 and the annual fee would decrease from $83 to $58. <\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0<\/span><span style=\"color: #000000; font-family: Calibri;\">That is a savings of $3,500 on the total loan amount and $25 per month over the life of the loan! <\/span><\/p>\n<h3><span style=\"color: #000000; font-family: Calibri;\">Requirements for a USDA Rural Development Loan<\/span><\/h3>\n<p><span style=\"color: #000000; font-family: Calibri;\">You might be thinking, that\u2019s great, but how do I know if a <a href=\"http:\/\/riverbankfinance.com\/mortgage-programs\/usda-rural-housing-mortgage.html\">USDA rural development loan<\/a> is the right fit for me?<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">I\u2019m glad you asked! <\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0<\/span><span style=\"color: #000000; font-family: Calibri;\">Qualifying for a USDA RD loan is very similar to an <a href=\"http:\/\/riverbankfinance.com\/mortgage-programs\/fha-mortgage.html\">FHA mortgage<\/a>, but requires no down payment and has two important requirements for income limits and location. <\/span><\/p>\n<ul>\n<li><a href=\"http:\/\/eligibility.sc.egov.usda.gov\/eligibility\/welcomeAction.do?pageAction=sfpd\"><span style=\"color: #000000; font-family: Calibri;\">Rural Development Eligibility Map<\/span><\/a><\/li>\n<li><a href=\"http:\/\/www.rd.usda.gov\/files\/RD-DirectLimitMap.pdf\"><span style=\"color: #000000; font-family: Calibri;\">Rural Development Income Limits<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"color: #000000; font-family: Calibri;\">Traditionally, when purchasing a home with less than 20% down, most loan programs require private mortgage insurance (PMI) to be added to your monthly payment.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">For this reason, USDA loans are more favorable, because their annual fee of .35% is significantly smaller than the .85% required for FHA loans.<\/span><\/p>\n<p><span style=\"color: #000000; font-family: Calibri;\">Have a specific scenario you\u2019d like to run past us?<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">Give us a call to speak with one of our licensed loan officers, or check out our <a href=\"http:\/\/riverbankfinance.com\/usda-rural-development-mortgage-calculator.html\">USDA Mortgage Calculator<\/a>.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">We would love to recommend the best loan program for you and your situation. <\/span><\/p>\n<h3><span style=\"color: #000000; font-family: Calibri;\">Apply for a Rural Develoment Mortgage<\/span><\/h3>\n<p><span style=\"color: #000000; font-family: Calibri;\"><a href=\"http:\/\/riverbankfinance.com\/mortgage-programs\/buying-a-home-with-no-down-payment.html\">Buying a home with no down payment<\/a> has never been better. Call Riverbank Finance today at 1-800-555-2098.<\/span><\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f185-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"185\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/1963#wpcf7-f185-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"185\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f185-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"ApplyFullHeader\" id=\"apply_form\">\n\t<p class=\"replaceheader\">Request Information Now!\n\t<\/p>\n<\/div>\n<div class=\"blueBox\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Name (required)\" value=\"\" type=\"text\" name=\"your-name\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Email (required)\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone:\" value=\"\" type=\"text\" name=\"your-phone\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-goal\"><select class=\"wpcf7-form-control wpcf7-select\" aria-invalid=\"false\" name=\"your-goal\"><option value=\"Purchase\">Purchase<\/option><option value=\"Refinance\">Refinance<\/option><option value=\"Cash Out\">Cash Out<\/option><option value=\"More Information\">More Information<\/option><\/select><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" placeholder=\"Your Message:\" name=\"your-message\"><\/textarea><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"referer-page\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text referer-page\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"referer-page\" \/><\/span><br \/>\n\t\n\t<\/p>\n\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner submit\" type=\"submit\" value=\"Submit Now!\" \/>\n\t<\/p>\n<\/div>\n<div style=\"text-align: justify; color:#666666;font-size: small;\">\n\t<p>By clicking \"Submit Now!\", you consent to receive calls and texts at the number you provided, including marketing by autodialer and prerecorded and artificial voice, and email, from Riverbank Finance LLC about your inquiry and other home-related matters, but not as a condition of any purchase; this applies regardless of whether you check, or leave un-checked, any box above. You also agree to our Privacy Policy and Terms of Use regarding the information relating to you. Msg\/data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. This no obligation inquiry does not constitute a mortgage application. To apply now or get immediate assistance, call us at 1-800-555-2098.\n\t<\/p>\n<\/div><p style=\"display: none !important;\" class=\"akismet-fields-container\" data-prefix=\"_wpcf7_ak_\"><label>&#916;<textarea name=\"_wpcf7_ak_hp_textarea\" cols=\"45\" rows=\"8\" maxlength=\"100\"><\/textarea><\/label><input type=\"hidden\" id=\"ak_js_1\" name=\"_wpcf7_ak_js\" value=\"213\"\/><script>document.getElementById( \"ak_js_1\" ).setAttribute( \"value\", ( new Date() ).getTime() );<\/script><\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>USDA Lowers\u00a0Fees for RD Loans Great news for homebuyers considering a USDA rural development home loan (RD Loan)! \u00a0The already popular zero down mortgage is getting even better.\u00a0The USDA announced this week that they will be decreasing both the upfront guarantee fee\u2014a closing cost which is financed into the total loan amount at close; and<a class=\"excerpt-read-more\" href=\"https:\/\/riverbankfinance.com\/blog\/usda-lowers-upfront-and-annual-fees\/\" title=\"ReadUSDA Lowers Upfront and Annual Fees for RD Loans\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":10,"featured_media":2063,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[301,70],"tags":[381,598,599,597,273],"class_list":["post-1963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-first-time-home-buyer","tag-no-down-payment-mortgage","tag-rd-loan","tag-rural-development-loan","tag-usda-loan","tag-zero-down-mortgage"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/1963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=1963"}],"version-history":[{"count":9,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/1963\/revisions"}],"predecessor-version":[{"id":2010,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/1963\/revisions\/2010"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/media\/2063"}],"wp:attachment":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=1963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=1963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=1963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}