USDA Rural Development Annual Fee Payments

 All section 502 guaranteed loans require a 0.3 percent annual fee effective October 1, 2011.  Some lenders have attempted to pay a portion of the annual fee payment in advance.    USDA will bill lenders annually or when the loan is paid off.  USDA will bill lenders for the fee 12 months from the date the loan funded.

• For example, if a loan was closed October 25, 2011, the first annual fee will be billed by the Agency and due on November 1, 2012.  The first billing for the annual fee will be in October 2012 and will be due November 1, 2012.

Lenders should collect 1/12 of the annual fee on a monthly basis into an escrow account, until billed by USDA Rural Development.

USDA has its guarantee up-front and annual fee calculator it will be posted on the USDA LINC website identified below.  This version corrects the annual fee payment date information and is the most current version to utilize. 

https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do

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