On May 26, 2010 Rural Development released an updated to the USDA Rural housing program that said they would begin issuing conditional commitments now that funds have run out. Any new loan with a conditional commitment will have an increased funding fee that is paid to Rural Development for guaranting the loan.
The guarantee fees that will be reflected on these modified (“subject to”) approvals are 3.50% for purchase loans, and 2.25% for refinance loans. For those loans that are not in disaster-relief areas, these new USDA Rural Development guarantee fees for purchase and refinance transactions should be disclosed on all new applications,. Additionally, if your loan was not obligated by USDA Rural Development prior to the exhaustion of funds, this increased guarantee fee will need to be re-disclosed to you by your lender.
What does this mean for you as a Delaware home buyer wishing to use this program? Your closing costs will not increase because the funding fee is financed into the loan. This means your loan will increase which means a slightly higher mortgage payment for the same purchase price as the previous fee on a purchase loan was 2%.
Most banks are not lending until Congress restores funding but Primary Residential Mortgage, Inc. can get you a USDA Rural Housing Loan to purchase a home in Delaware because we are accepting the “subject to” approvals from Rural Development.
If you would like to apply for a Delaware USDA Rural Housing Loan for the purchase or refinance of a home, please feel free to call me at 302-703-0727, send and e-mail to DelawareMortgages@yahoo.com or APPLY ONLINE NOW.
John R. Thomas – Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
*This is not an offer to lend. 
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