USDA announced on August 17th that they have run out of funding authority for refinances until the new fiscal year starting October 1st, 2012. At that time the refinances will be subject to the 2% up front guarantee fee (up from 1.5%), and the .40% annual guarantee fee (up from the present .30%).
Purchase transactions will not be affected by this announcement.
Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370. He can be reached at firstname.lastname@example.org, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act. The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Terms and conditions apply, all loans subject to underwriter approval. Subject to change without notice. Guild Mortgage Company NMLS #3274