Effective for applications taken on or after 9/01/18

1. USDA No Longer Requires Termite Inspection
Termite inspections are no longer required for USDA loans unless the appraiser, inspector or State law requires the inspection to confirm the property is free of active infestation.
NOTE: Termite inspections are still required for all VA loans

2. USDA Annual Premium Reserve Cushion Change
We no longer require an escrow reserve cushion for the USDA Annual Fee.

Previously, we required 2 months reserve cushion to be collected at closing because the annual premium is due one year from the closing date. Based on the first payment due date, this would typically leave the escrow reserves short by up to 2 months. USDA recently changed the due date of the annual fee to one year from the first payment date. Therefore, the cushion is no longer necessary.