Update on USDA Funding Issues

USDA is still on the verge of running out of money.  Most people assumed they would already be out of money by now, but we are still getting commitments.   One thing that we do know for sure is that USDA and Congress are working on the funding issue.  We also know that the USDA funding fee is increasing from 2% to 3.5%.  This should all be worked out in the coming days or weeks.   The increase is a small price to pay for a 100% mortgage with no monthly mortgage insurance.  Since the funding fee is typically financed into the loan, the out of pocket expense will not change and monthly payments will be minimally affected.   Plus, with the increased funding fee, the USDA loan will likely have a long future.  This is good news for Georgia home buyers looking for rural homes.

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