USDA Extends OLD Maps + 3% Down Program Going Away

USDA Extends OLD Eligible Area Maps to January 15th, 2014 Barring further Congressional action, current eligible areas for the USDA Rural Housing Programs will remain unchanged through January 15, 2014. Your client will be subject to the new eligible areas if they do not receive a Conditional Commitment by USDA prior to January 15, 2014. The Contingent Conditional Commitment indicates the loan will be insured “subject to the availability of commitment authority.” The Contingent Conditional Commitment may also include other conditions. The availability of “commitment authority” is based processing funding allocations to the states within USDA and is expected to take two to three weeks.

NO MORE 3% Down Payment Programs through FannieMae FNMA will be tightening their guidelines in less than a month increasing their minimum down payment requirement to 5%, from 3%. What program(s) does this effect?  Mainly, the FannieMae HomePath Program and their Conventional HFA Program* What about FHA?  FHA's 3.5% down payment will remain [for now] but is not as attractive due to the new "life of loan" mortgage insurance requirement for most loan transactions. *The HFA Program is popular w/ clients using down payment assistance programs such as Maryland's CDA & DSELP.  It is a great option for those with high credit scores to obtain discounted mortgage insurance and avoid FHA financing.

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