USDA Upfront Guarantee Fee Increases Oct 1 2015

USDA Loans

Today is the day that the USDA Upfront Guarantee fee will be increasing to 2.75%

The Annual (monthly) fee will remain at .5%

The information below  is a re-post of a previous article on this website. It shows the  breakdown of the changes and how USDA compares to VA, FHA and Conventional financing.


USDA Loan Guarantee Fee Increase

Effective October 1st, the USDA loan guarantee fee will be increasing from 2% to 2.75% for the upfront premium.  The USDA loan guarantee monthly premium will remain at .5%.

The upfront USDA loan guarantee fee is the equivalent of FHA’s upfront mortgage insurance premium, VA’s Funding Fee or Private Mortgage Insurance (PMI) on conventional loans with less than 20% down.

Let’s compare the different programs


Upfront Premium

Monthly Premium

Min Down Payment




Zero Down


2.15% first time use
3.3% subsequent use
Zero if receiving VA disability

No monthly premium

Zero Down for loan amounts up to the county limit






None unless using single premium coverage

Varies based on down payment and credit score


VA is by far the best option for anyone who is eligible for it. The lack of monthly premiums makes the payments much more affordable.

And speaking of eligibility, let’s take a look at USDA Mapthe eligibility criteria for USDA Loans

USDA Loans are an excellent choice for those of you who like to live outside of the city and would like to purchase a home with no down payment.

Ready to make your move?  Contact me for a free full pre-approval and a referral to a local Realtor

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