For how long will the annual fee be collected on a USDA loan?

The annual fee for a USDA loan is collected for the life of the mortgage loan. This fee is designed to support the program and ensure that it can continue providing affordable housing options to borrowers in rural and suburban areas. The annual fee is typically 0.35% of the loan balance and is assessed each year the loan is active, which means as long as the borrower has not paid off the loan, they will be responsible for this fee.

The context of the annual fee is critical because it reflects the ongoing nature of the USDA loan program's funding. Unlike some fees that may only be applicable for a certain period or a one-time charge, the annual fee represents a commitment to maintaining the loan and is an essential part of the overall cost of borrowing under this program.

The other options propose limited periods or conditions under which the fee would be collected, which do not align with how the USDA loan program is structured. Therefore, recognizing that the fee persists for the duration of the loan reinforces the importance of understanding the long-term financial implications of obtaining a USDA loan.