What defines the fee schedule for loan requests in USDA loans?

The fee schedule for loan requests in USDA loans is defined by the date of issuance of the Conditional Commitment. This date is significant because it marks when the USDA has officially agreed to guarantee a loan for a borrower, which subsequently sets the parameters for the fees that will apply.

Once the Conditional Commitment is issued, the specific fees laid out in the USDA's current fee structure become effectively locked in for that loan, which ensures predictability and security for both the borrower and the lender. This structure can include various fees such as upfront guarantee fees and annual fees, all of which are consistent with USDA guidelines as of the date the Conditional Commitment is issued.

While factors like current interest rates, a borrower's credit score, and the type of property purchased can all influence a loan's affordability and eligibility, they do not directly establish the fee schedule itself; it is the Conditional Commitment date that defines the fees that will be applied to the loan.