What is the percentage of the annual guarantee fee for USDA financing?

The correct percentage of the annual guarantee fee for USDA financing is 0.35%. This fee is essential in helping to support the USDA Rural Development program, allowing it to continue providing guaranteed loans to eligible borrowers in rural areas. The 0.35% guarantee fee is calculated based on the loan amount and is typically paid on an annual basis, although it can be included in the mortgage payment.

Understanding the annual guarantee fee is crucial for borrowers as it affects their overall loan costs and monthly payments. The fee contributes to maintaining the program, which aids families in obtaining housing that they may not afford without such assistance. In the context of other options, it's important to understand that the fee is set at 0.35% and has been this way to ensure the program’s sustainability while making homeownership accessible in rural regions.