Thursday, May 22, 2014

2014 KENTUCKY USDA GUARANTEE FEE AND ANNUAL FEES


2014 KENTUCKY USDA RURAL DEVELOPMENT GUARANTEE AND ANNUAL FEES




KENTUCKY USDA GUARANTEE FEE
USDA charges Kentucky USDA Rural Housing lenders, who can pass the charge to the borrower, a one-time up-front cost, which is known as a Guarantee Fee. The Guarantee Fee can be financed in addition to the maximum base loan amount. The Guarantee Fee is calculated as follows as of October 1, 2011:
PURCHASE TRANSACTION CALCULATION:
  • 2% of the TOTAL loan amount.
  • Calculation: Base loan amount divided by .98 = Total loan amount (round down to nearest dollar). Total loan is then multiplied by 2% to get the amount of the guarantee fee.
  • Guarantee Fee & Annual Fee (monthly) Calculator can be found on the USDA training resource website.
CALCULATION FOR REFINANCE TRANSACTIONS:
  • 2% of the TOTAL loan amount.
  • Calculation: Base loan amount divided by .98 = Total loan amount (round down to nearest dollar). Total loan is then multiplied by 2.0% to get the amount of the guarantee fee.
  • Guarantee Fee & Annual Fee (monthly) Calculator can be found on the USDA training resource website.
ANNUAL FEE:
All loan transactions will include an annual fee of .40% and is for life of loan