The annual fee for USDA loans will increase from 0.4% to 0.5% of the unpaid loan balance beginning October 1, 2014. There is no change to the upfront fee of 2% which may be financed.
USDA, or Section 502 loans are intended to help families purchase or refinance homes in rural areas. Zero down and no monthly mortgage insurance make these loans affordable and accessible. The property must be in an approved rural area and income limits apply. Find eligible rural areas here.