A side benefit to USDA Rural Development is that they now have the authority to charge a new annual fee of up to .5 percent. This is similar to the yearly mortgage insurance premium currently charged by FHA and will make the loan very comparable to FHA if, and when, this fee is included.

According this week’s announcement from USDA, “Based on current usage, sufficient funds should be available for the remainder of the FY to fund all guaranteed refinance loans at a 0.5 percent guarantee fee.” This should be very good news for those companies funding the loans while waiting for the reauthorization of the program, like us. It wouldn’t be nice to have several of these loans on the books and then find out you need to be charging for a yearly fee also.

The darker areas above show the portion of Lane County that is not eligible for the USDA Rural Guaranteed Home Loan Program. Basically, the program is available in nearly all of Lane County that is not in the Eugene/Springfield urban growth boundary.

Rural Development is also working on a system upgrade to the “GUS” automated underwriting system that will, once again, underwrite the USDA loans online. The current system is still set with the 2% up front fee, instead of the new 3.5% fee. This is not expected to happen before October. “While the 3.5 percent up-front fee is sufficient at the current subsidy rate, we must be prepared to make adjustments in later years using the new authority for an annual fee to maintain a zero cost program.”

Low Income and Very Low Income borrowers will continue to be accommodated with a waiver of fees through the USDA Direct Loan Program.

Contact me

Navigating the mortgage approval process can be daunting. You need someone on your side. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an USDA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

USDA No Money Down Program changes is a post from: No Money Down OR & CA

There are hoops that have to be jumped through for any lender that funds USDA loans under the current circumstances and they must fund the loan and keep it on their books until USDA is in the guarantee market again. That is what we are doing. Our USDA loans are processed, underwritten and funded “in-house.”

Contact Me

If you would like more information about USDA Loans, give me a call. Even if you are already working with a mortgage lender, call me. You wouldn’t have back surgery without a second opinion, why would you buy a home without one. Call me for the second opinion. We can discuss your specific information and if you are in the best product for you, I will tell you so. I am Fred Chamberlin, Senior Mortgage Consultant at Alpine Mortgage Planning, 1200 Executive Pkwy., Eugene OR 97401. I am here to help you with the mortgage loan process and also help you avoid stress. The mortgage process is changing rapidly, make certain you are working with someone that can keep up with the changes. You can reach me at 541-342-7576/541-221-3455 cell or by e-mail. Trust experience to help you with your Eugene/Springfield mortgage questions. One final note, my offer is not limited to Lane County but can be used anywhere in Oregon or California that qualifies for a USDA loan.. Call today!

Here is a Lane County map. Any area outside of the dark part should fall under the USDA guidelines:

USDA loans still being processed and funded is a post from: No Money Down OR & CA

I give you this preface because I wanted you to know that he has a very important job and has a lot to do to keep up with the market and make sure we are positioned properly at all times. By my calculations, that is more than a full time job. Even with that huge responsibility, he took the time today to remind everyone about what we are really celebrating this weekend. This is from Dan:

Can you believe it is Memorial Day Weekend already? 

If you don’t recall why we have a Memorial Day, I have attached a link – http://en.wikipedia.org/wiki/Memorial_Day

If you do recall why we have Memorial Day, I hope you take a few moments over the weekend to contemplate the reason yourself and maybe even educate or remind someone else that may not understand or appreciate it.  Explaining the significance to a child or young adult comes to mind.

Given our own busy and challenging lives, it may be easy for many folks to forget or take for granted what the Servicemen and Servicewomen have done and are doing to support or even maintain our daily opportunities.  The “service” portion of the name is not a coincidence. 

Additionally, it is appropriate to acknowledge the sacrifices endured by the immediate and extended families impacted by the service of their own family members.  That may be some of you.  As much as we must thank and honor the Servicemen and Servicewomen, we should also acknowledge and appreciate the immediate and extended families impacted.  There will be way too many families that will not have the pleasure of sharing this weekend with a fallen or simply absent Serviceman / Servicewoman.

I hope that you consistently do what you can to support such individuals and spread that sentiment to others.

I want to thank Dan for the reminder and also thank those that have served our country. As a Vietnam era Veteran, I know that there were times we didn’t do a good job of remembering. So, just take a moment this weekend and remember who made the sacrifices to keep us free. Have fun and return to work rejuvenated!

Memorial Day 2010 is a post from: No Money Down OR & CA