USDA Implementation of Annual Fee and Decreased Upfront Fee

Single Family Housing Guaranteed Loan Program Implementation of Annual Fee and Decreased Upfront Fee Effective October 1, 2011

Implementation of an annual fee of 0.30 percent of the outstanding principal balance will allow the Agency to reduce the up-front guarantee fee. Therefore, effective October 1, 2011, the up-front guarantee fee for purchase transactions will decrease from 3.5% to 2% for purchase loans. The up-front guaranteed fee for refinance loans transactions will remain at 1%.