News: Refinance Home Mortgage Texas
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USDA Press Release
6/18/2011
USDA to require PMI on all loans effective 10/1/2011
Effective 10/1/2011 USDA has indicated that their single family mortgage loans will now require monthly PMI-mortgage insurance.
This is depressing news to the would be buyer wishing to use USDA funding to buy a home. USDA was heralded as one of the only loan programs not charge monthly PMI.
What does all this mean? It means that your mortgage payment will be going up!
I can understand why this is happening. If we want USDA to stay around for decades to come its necessary for them to do this. USDA loans are now in massive demand. No money down, no money to closing, who wouldn’t want to do this loan? Well, its caught on like wildfire so in order to protect the program PMI will have to be passed through to new homeowners on or after 10/1/2011
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