© 2018 RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook
The lender will pay an up-front guarantee fee, which may be passed from the lender to the borrower. Payment is paid by the lender to the Agency. When a lender is not submitting electronic loan closings, as outlined in paragraph 16.3 above, the fee must be paid with a lender or closing agent check made payable to payable to the Treasurer of the United States; United States Department of Agriculture; Rural Development; or other reasonable variation such as USDA; USDA - Rural Development; or to Rural Development. Lenders who participate in the submittal of electronic loan closings will pay the up-front guarantee fee through pay.gov.
Fees received by check will be processed daily in accordance with subpart B of part 1951. Fees will be returned to the lender if the guarantee is not issued. Once the fee is paid and the guarantee issued, the fee is nonrefundable.
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The up- front guarantee fee is subject to change to maintain a subsidy neutral program required of Public Law 111- 212. Future updates, after notification by Federal Register, will be published in Exhibit K, of RD Instruction 440.1, available in any Rural Development office or on the Rural Development website as follows: http://www.rurdev.usda.gov/rd_instructions.html.
Purchase Loans – Up-Front Loan Guarantee Fee
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NOTE: An up-front fee calculator is available for use by lenders and employees at the following website:
https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.doAdditional Resource:https://www.rd.usda.gov/files/3555-1chapter16.pdf#page=7