USDA lending is back, but not necessarily in full swing…there are some changes. I think that the custom home builders and Realtors in areas such as Prosper, Little Elm, and Celina will benefit as more buyers will have the opportunity to buy with less money out of pocket again.
Like other non-conventional loans, USDA has an additional fee that comes with it,and it appears that USDA has increased it a little. The purchase will have a 3.5% guarantee fee, and refinances will come with a 2.25% guarantee fee.
The maximum loan to value for Guranatee USDA loans is: 103.626% for purchase loans and 102.301% for refinances…where you are financing the Guarantee fee.