USDA Home Loan – Program Fees

Guarantee fees can be divided into several different sections.

• Guarantee Fee:

  This fee needs to be paid at the time the guarantee is issued and is paid to the Rural Housing agency. This is a onetime upfront fee which is 2% of the loan amount, or a percentage of the guarantee which is given. For a refinance transactions a .5% upfront fees is required.

• Annual Guarantee Fee:

  Every year, a .3% annual fee must be paid for the life of the loan. This is typically included in your monthly payment. The fee depends on the loan amount and is paid for the upcoming year. Collection of this fee is done on the 1^st of January in every calendar year.

• Transfer fee:

  When you wish to transfer the property from one owner to another, this fee has to be paid. It is a flat charge of $1,250. These fees have to be paid to cover the administrative charges.

Was this article helpful?
(5 votes, average: 4.40 out of 5)
 Loading ...