See How the USDA Guarantee Fee Stays Low for 2018 to Help Home Buyers
Homebuyers received great news about the USDA Rural Development guaranteed loan program! In 2017, USDA drastically reduced the guarantee or funding fee they charge upfront on USDA loans, plus lowered the annual fee also. So the great news is that the USDA guarantee fee 2018 (also often referred to as a USDA funding fee) will remain at the low 1% financed amount! Additionally the annual fee will remain at .35% which is much lower than FHA’s standard 30 year rate of .85%. The USDA fiscal year stretches from October 1, 2017 – September 30, 2018, so these fees will be effective until 9/30/2018.