Which of the following best describes the current USDA upfront guarantee fee?
Correct Answer
B) 1.0% of the loan amount
The USDA upfront guarantee fee is currently 1.0% of the loan amount. This fee can be financed into the loan amount, similar to how FHA's upfront mortgage insurance premium works. The fee helps fund the USDA loan guarantee program.
Why This Is the Correct Answer
The USDA upfront guarantee fee is currently 1.0% of the loan amount. This fee can be financed into the loan amount, similar to how FHA's upfront mortgage insurance premium works. The fee helps fund the USDA loan guarantee program.
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A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?