Today (June 20, 2018) the U.S. Department of Agriculture published in the Federal Register (at 83 FR 28547 [2018]) a proposed rule affecting single-closing, construction-to-permanent loans (see https://www.federalregister.gov/documents/2018/06/20/2018-13154/single-family-housing-guaranteed-loan-program).
Among the changes proposed include permitting creditors to charge a higher rate of interest during the construction phase than the note rate (subject to caps imposed by RD), as well as permitting creditors to escrow 12 months’ worth of fully amortized PITI payments during such phase “in order to achieve a 30 year amortization of PITI payments.”
Comments are to be submitted on these proposed rules no later than August 20, 2018.