I just received the following update on some upcoming changes with USDA and FHA loans, from Brian Liebman, Senior Mortgage Banker at Director’s Mortgage (whom I work with frequently):
“Rates dropped on Monday to their lowest levels since I have been doing mortgage loans.  I locked a client at 4 percent on Monday. As you know there are many variables, but I can tell you this is as low as I have seen!
USDA loans are changing in October.  They are going to lower the upfront funding fee and begin charging a monthly mortgage insurance fee. This is another example of the government backing away from the mortgage market and leaving the banks to figure it out.
FHA has increased their monthly fee several times over the last few years as well.  With the new change for USDA, 3 percent down conforming might be a better option for your clients.”
Those who are in the market for a loan in the near future should consider how these changes might affect their lending plans  — and make sure their lender is up-to-date, too.