No more USDA mortgage loans for Shasta Lake City?

That’s the information I’m getting from the always informed Judy Lampton at Summit Funding. USDA loans are a good source of funds for buyers needing to buy with no money down. Here’s the info:

“As of October 1st Shasta Lake City will no longer be USDA eligible and they are raising their Annual Mortgage insurance fee from .30% to .40%.
On a 100,000 purchase that means the annual fee (charged monthly) will go from $300 to $400 or $8.33 a month. Not a huge increase in fee’s but the loss of SLC as an acceptable area is huge.

In the past USDA changes hinge on the date you get “commitment for funds” from USDA. This happens after all conditions have been met and right before loan docs go out.
USDA loans in Shasta Lake City coming to an end soon?
We have not seen an official bulletin regarding this change but we know that it is coming; so if you have someone looking in SLC you need to get them off the fence and into contract this month to make sure it closes by 9/28…just to be on the safe side.

I will send you more information when I have it.

Your Referrals are Very Appreciated.
Thank you,

Judy Lampton
Loan Consultant
Summit Funding, Inc.
3673 Eureka Way
Redding, CA 96001

Off – 530-722-9109 x107
cell – 530-953-9299
Fax – 530-722-0498

NMLS # 357395″

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