FAQ
USDA Guarantee Fee and Annual Fee: How Much Do They Cost?
USDA Rural Development loans have two fees: an upfront guarantee fee and an annual fee (similar to FHA's MIP). Both are paid by the borrower.
Details
The Full Answer
- Upfront guarantee fee: 1.00% of loan amount (can be rolled into the loan)
- Annual fee: 0.35% of the outstanding loan balance per year, paid monthly
- Neither fee requires private mortgage insurance
- USDA fees are significantly lower than FHA MIP for comparable loan sizes
CTC's Role
How CTC Processing Handles This
CTC Processing calculates USDA guarantee fees at intake and verifies current rates at USDA's website (usda.gov). USDA fee rates change periodically — CTC confirms current rates on every USDA file.
Have more questions?
CTC Processing works with Colorado loan officers. Call 970-222-2615 or email ctcprocessingllc@gmail.com.
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