Mortgage Navigator • USDA Home Loans
USDA Guarantee & Annual Fee
USDA Guaranteed loans do not use conventional PMI, but the program has an upfront guarantee fee and an annual fee.
Current upfront guarantee fee
USDA's current fee instruction lists the Section 502 Guaranteed upfront fee at 1.00% for a new Guaranteed loan and for an eligible Guaranteed/Direct refinance.
Current annual fee
The same USDA instruction lists the annual fee at 0.35%.
Do not call the annual fee “PMI.” It serves a different program function even though consumers may experience it as part of the monthly housing payment.
Official USDA baseline
USDA RD Instruction 440.1 · USDA Guaranteed Home Loans
USDA rules and income/property eligibility can change. The current USDA eligibility site, handbook, GUS result and approved lender requirements control the actual transaction.