by Shannon McAlister | Aug 12, 2014 | Mortgage, Rural
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.
by Shannon McAlister | Oct 1, 2013 | Mortgage
Wondering what impact the government shutdown will have on the loan process? Here are the things you need to know.
- IRS tax transcripts. These must be ordered from the IRS for ALL LOANS. They typically take a day or two. Expect delays.
- Social Security Number verification. This is required for ALL LOANS. It typically takes a day or two to process. Expect delays.
- Verification of Employment. Expect delays for government employees needing a VOE.
- FHA & VA Loans. Case numbers must be ordered for these types of loans. As of this morning, the website was working fine and FHA case numbers were being issued. It is my understanding that if the shutdown continues beyond one week, this service could be affected and delays will follow.
- VA Appraisals. This is an automated system that should not be affected, but could be if the shutdown goes on for any length of time, delays could follow.
- VA Certificate of Eligibility. This is typically an automated process and should not be affected by the shutdown. If it continues and the automated system isn’t supported, it will revert to a manual system; expect delays.
- USDA Loans. This office is closed due to the shutdown. USDA loans are underwritten by the lender and then sent to the USDA for a second underwrite. Turntimes are already 7-14 days. Expect delays in the short term and significant delays if the shutdown continues.
- Lock Agreements. If you are affected by the shutdown, reassess your lock and plan accordingly. Lock extensions can be costly.
- Interest rates. This is the big variable. Extensions are costly and an increase could put a loan in jeopardy. Do what you can mitigate any risk of losing your lock.
If you have any questions regarding this information, or would like to know how your loan application may be affected by the government shutdown, contact me anytime. I will provide updates as they become available. In the meantime, let’s hope for some teamwork and an agreeable budget.
