USDA has issued a bulletin this week announcing that the up-front guarantee fee and annual fee will be revised as follows effective with conditional commitments issued October 1, 2012 (start of fiscal year 2013). Note that the effective date of the change is the date USDA issues the approval, not when we (Sierra Pacific Mortgage) issue the loan approval. USDA has made it very clear that backlogs are being experienced in many states. Although Massachusetts has not been as effected as other states, it is important to submit full files to underwriting in the beginning to help improve processing and turn times.
Starting on October 1, 2012 the FY 2013 Fee Structure will go into effect for all new conditional commitments. Below are the details of the changes.
Upfront Guarantee Fee:
Purchase Transactions – 2% – No Change
Refinance Transaction – Increasinig from 1.5% to 2%
Purchase Transactions – Increasing from .30% to .40%
Refinance Transaction – Increasinig from 30% to .40%