Loan programs
USDA guarantee fee
Definition
The USDA guarantee fee is charged on USDA Rural Development guaranteed home loans, which allow eligible buyers in qualifying rural and suburban areas to buy with no down payment. It is 1% of the loan upfront, which can be financed, plus an annual fee of 0.35% of the average unpaid balance, collected monthly.
USDA guarantee fee, explained
Figures shown apply to loans obligated on or after October 1, 2025 (fiscal year 2026).
Eligibility depends on property location and household income limits.
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The USDA Loan Calculator shows how this works with real numbers. USDA rural housing loan payment with the upfront and annual guarantee fees.
Open the USDA Loan CalculatorQ.01What is usda guarantee fee?
The USDA guarantee fee is charged on USDA Rural Development guaranteed home loans, which allow eligible buyers in qualifying rural and suburban areas to buy with no down payment. It is 1% of the loan upfront, which can be financed, plus an annual fee of 0.35% of the average unpaid balance, collected monthly.
Q.02Do USDA loans require a down payment?
No — eligible borrowers can finance 100% of the price.
Explain it with their numbers
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