The USDA loan program is fully funded and there should be no more funding problems for the USDA loan program for at least the foreseeable future.
USDA Loan Funding Fee Rises
The USDA loan funding fee has went from from 2% to 3.5% which means that getting a USDA loan has become more expensive. That is the bad news. The good news is that this change in the up front funding fee means that the USDA loan program will most likely become a self-sustainable program now and will be able to help more homeowners as the program is no longer only reliant on acts of congress.
USDA Loan Automated Underwriting
The USDA loan automated underwriting system is called “GUS” and is back up and running after being down for a period of time. This means that most files can be run through the automated underwriting system rather than have to be manually underwriter which will save time and provide more accurate results.
USDA Loan Income Limits Raised
A change in the USDA loans income limits is also good news for the USDA loan program — Income limits have also been raised in most areas. With USDA loans, it is possible to make “too much money” where you can’t qualify – so knowing what the income limits for your area are is very important when getting a USDA loan.
With the new increases in FHA monthly mortgage insurance and the fact that no money down is needed, USDA home loans are the best option out there if you meet the income requirements and you want to purchase in an eligible USDA area.
The easiest way to find out if you can qualify for the USDA loan program is to speak with a loan officer in your area who can help by answering any questions you have about the program. Speak to a USDA expert loan officer today!