On October 1st 2011, USDA will change it’s funding fee structure. The new funding fee for purchases will be 2% upfront, and 0.3% annually. Refinances will stay the same at 1% upfront, but will also have the 0.3% monthly fee.
This change is not the best news for USDA, but the program remains to be the only program besides a VA loan that allows a borrower to buy a home with no down payment. The payment still ends up being favorable to the borrower.
To Apply for a no down payment USDA Home Loan, use our secure loan application.