Which statement about USDA Rural Development loan guarantee fees is correct?
Correct Answer
A) There are both upfront and annual guarantee fees
USDA Rural Development loans require both an upfront guarantee fee (typically 1% of the loan amount) and an annual guarantee fee (typically 0.35% of the outstanding loan balance). This structure is similar to FHA loans with both upfront and annual MIP.
Why This Is the Correct Answer
USDA Rural Development loans require both an upfront guarantee fee (typically 1% of the loan amount) and an annual guarantee fee (typically 0.35% of the outstanding loan balance). This structure is similar to FHA loans with both upfront and annual MIP.
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