What Is the USDA Annual Fee? | The 2 Mortgage Guys

USDA’s annual fee is about 0.35% of the loan balance, paid monthly. See how it works, how long it lasts, and how it compares to FHA with 2MG.

What Is the USDA Annual Fee? | The 2 Mortgage Guys

USDA’s annual fee is about 0.35% of the loan balance, paid monthly. See how it works, how long it lasts, and how it compares to FHA with 2MG.

What Is the USDA Annual Fee?

How the Annual Fee Works

What It Means for Your Payment

Quick Example

How We Explain the Fee Up Front

Keep Exploring

Frequently Asked Questions

Want a Clear USDA Payment With the Annual Fee Included?

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USDA does not use traditional PMI. Instead, Guaranteed loans charge an annual fee — currently about 0.35% of the outstanding balance — collected monthly with your payment. Ryan and Steve break out that line item so you see true PITIA before you shop.

One recurring charge — smaller than most FHA MIP — baked into your monthly housing payment.

Buyers often ask whether USDA is “free” after zero down. The annual fee is the main ongoing cost to understand.

On a $250,000 USDA loan balance at 0.35% annual:

Ryan and Steve make the annual fee visible early — so USDA vs FHA vs conventional is an honest monthly comparison, not a surprise after appraisal.

Step

Related guides to help you compare costs and move toward pre-approval.

2MG Daily

Recent articles on USDA loans, fees, and rural financing.

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Send Ryan & Steve your purchase price and county — we will model the 0.35% annual fee, compare USDA to FHA, and show the real monthly number before you shop.

Steve DeLon and Ryan Minick - Branch Managers and Senior Loan Officers at .

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Ryan Minick NMLS# 203249

Steve DeLon NMLS# 202876

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1221 Appletree Lane, Kokomo, IN 46902

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