A borrower wants to purchase a home for $200,000 using a USDA Rural Development loan. What would be the upfront guarantee fee?
Correct Answer
B) $2,000
The USDA upfront guarantee fee is 1% of the loan amount. On a $200,000 loan, the upfront guarantee fee would be $200,000 × 1% = $2,000.
Why This Is the Correct Answer
The USDA upfront guarantee fee is 1% of the loan amount. On a $200,000 loan, the upfront guarantee fee would be $200,000 × 1% = $2,000.
More Mortgage Knowledge Questions
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