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USDA loan for a home

Posted on: 21st Feb, 2013 12:52 am
We are considering a USDA loan for a home with a purchase price of $24,1990. I know that the USDA Guarantee fee can be rolled into the loan. However, I wanted to know if you paid that fee upfront, do you still have to pay a monthly fee for it in your mortgage cost? Right now it shows a monthly fee of $81. If I paid the upfront fee, could I eliminate that $81 each month?
Hi Binnyy,

As far as I know, though you pay the USDA guarantee fee, you will be liable for paying an amount monthly. This is somewhat similar to FHA mortgage insurance premium. Nevertheless, you can have a word with your USDA lender and clarify the matter.

Take care.
Posted on: 21st Feb, 2013 01:16 am
Hi Binnyy!

Welcome to forums!

As Sara has said, it will be better if you could get in touch with your local USDA lenders and clarify the matter. They will better help you in this regard.

Feel free to ask if you've further queries.

Sussane
Posted on: 21st Feb, 2013 07:32 pm
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