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Profile picture for mrs ryca

Is there MI on USDA loan

Just got my good faith estimate...700 origination fee by mortgage co(thought there wasn't one)., 2860 2% guarantee fee for using the USDA loan, but there is 34/mo MI.  IS there now monthly MI on USDA loans?
  • March 31 2012 - Orlando
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Answers (6)

Profile picture for Paul Tsiotis
Yes there is, but considering you're getting  a great loan like that, its still less than traditional loan costs.
  • April 01 2012
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Yes, there is now a monthly fee. A lot less than other loans when putting so little down so still a great program. Hope this helps. 
  • March 31 2012
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Profile picture for mrs ryca

Thanks for the help... I won't cry over $34.00 a month

  • March 31 2012
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As of last october there is monthly MI it is 0.3% annual premium which is alot less than you would have on a High LTV loan with conventional or FHA financing

  • March 31 2012
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Yes, the guidelines changed late last year.   The upfront guarantee fee was reduced and they added a monthly amount.  USDA loans now have monthly MI but it is much smaller than FHA or conventional and you still have a no down payment loan. 

 

I only lend in Florida!

  • March 31 2012
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Profile picture for wetdawgs
I seem to recollect reading that this was added on sometime last fall (perhaps Oct 2011), but the MI payment is far lower than most loans. 
  • March 31 2012
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