April 28, 2016
Upfront Guarantee Fee and Annual Fee Reduction for Fiscal Year (FY) 2017
This message provides advance notice of the upfront guarantee fee and annual fee structure that will be effective for Single Family Housing Guaranteed Loan Program (SFHGLP) loans in fiscal year (FY) 2017, which begins October 1, 2016 and ends at the close of business on September 30, 2017. The upfront guarantee fee will change from 2.75% to 1.0% of the loan amount. The annual fee will change from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan.
Please refer to the unnumbered letter (UL), Upfront Guarantee Fee and Annual Fee for Fiscal Year 2017, for additional details.
The “Guarantee Fee & Annual Fee Calculator” is available online at the USDA LINC Training and Resource Library in the “Loan Origination” and “Guarantee Annual Fee (GAF) Billing and Payment” sections of the page.
Thank you for your support of the Single Family Housing Guaranteed Loan Program!
Or TEXT the word ‘LOAN’ to 38470