In September 2016 USDA announced a change in both the Upfront Guarantee fee as well as the Annual Fee. Both fees are seeing significant reductions for loans issued after October 1, 2016. The upfront guarantee fee is changing from 2.75% to 1.00% and the annual fee is changing from .50% to .35%.

What does that mean for you?

Savings! You’ll save money upfront when you purchase a USDA guarantee loan as well as each month on your Annual Fee payment.

Here’s a quick example on a $200,000 loan:

Prior to Oct 1, 2016 After Oct 1, 2016 Savings
Upfront Fee $5,500 $2,000 $3,500
Annual Fee (paid monthly) $83.33 $58.33 $25.00


You’ll realize an upfront savings of $3,500. You’ll also be saving $25.00 per month for the life of the loan.

How to take advantage of these savings

The new fees take affect for USDA Guarantee rural housing loans that are issued after October 1, 2016.

We’re very excited for these changes as it gives our clients in the rural areas of Utah an opportunity get into a home with more affordable financing.

To learn more, check out our Eligibility page or contact us for a FREE Consultation.

* more information about the USDA guarantee loan and other programs can be found on USDA’s website.