What is the up-front guarantee fee for USDA loans?

The up-front guarantee fee for USDA loans is 1.000%. This fee is a percentage of the loan amount and is typically added to the loan balance. USDA loans are designed to support rural home buyers and promote access to homes in designated areas, and the guarantee fee serves to help fund the program, ensuring its sustainability and availability to future borrowers.

Understanding the guarantee fee is critical as it impacts the overall cost of obtaining a USDA loan, but it is also consistent with the program's goal of keeping housing affordable for low- to moderate-income individuals and families. The guarantee fee can be financed into the mortgage, which means that borrowers may not need to pay it out of pocket upfront.

The other percentages provided do not reflect the current established rate for the up-front guarantee fee for USDA loans, making 1.000% the correct and most accurate representation of the cost associated with this particular loan type at this time.