USDA Rural Development
UPFRONT GUARANTEE FEE CALCULATION
BEST PRACTICES
Determine what your maximum loan amount is.
$________________ (Appraised Value)/.9725 (effective 10-1-2015)= $_______________
rounded down to nearest dollar equals Maximum Loan Amount of $________________.
Example:
$ 100,000.00 (Appraised Value)/.9725 = $ 102,827.76 rounded down to
nearest dollar equals Maximum Loan Amount of $102,827.00.
IMPORTANT NOTE: This calculation will yield the maximum allowed loan amount. The
final however may have to be adjusted downward if the loan amount results in cash back
to the borrower other than the borrower receiving back verified funds paid in advance of
closing…i.e. earnest money, appraisal fee, credit report fee, etc.
Be sure that any amount added to the loan amount ABOVE appraisal is
only the Guarantee Fee whether all of fee or a portion thereof.
“ONLY THE AMOUNT OF THE GUARANTEE FEE PAID
BY THE BORROWER AND FINANCED CAN EXCEED
THE APPRAISED VALUE.”
Make certain that the Upfront Guarantee Fee is calculated based on the
total loan amount. Unlike FHA UFMIP and VA Funding Fee which is calculated on
the “Base Loan Amount” the Upfront Guarantee Fee is calculated on the TOTAL
LOAN AMOUNT.
$______________ (Final Loan Amount) x .0275 (2.75%) = $_________________
Guarantee Fee
Example:
$102,827.00 (Final Loan Amount) x .0275 (2.75%) = $2,827.74 Guarantee
Fee
This calculator available at https://usdalinc.sc.egov.usda.gov/
USDALincTrainingResourceLib.do
Guarantee Upfront and Annual Fee Calculator - Version PV1.8 09/2/2014
Guarantee Fee Calculator
(For Financing Entire Upfront Guarantee Fee)
Appraised Value of Property being Financed:
Enter Base Loan Amount (Must be less than or equal to the Appraised Value):
$100,000.00
$100,000.00
Select Guarantee Fee Percentage Rate:
2.75%
Guarantee Fee:
$2,750.00
GRH Loan Without Guarantee Fee Financed:
$100,000.00
GRH Loan with Entire Guarantee Fee Financed in Loan:
$102,827.76
Guarantee Fee with Entire Fee Financed In Loan:
$2,827.76
The guarantee fee is always based on the final, full loan amount,
including any fee that may be financed in the loan.
Guarantee Fee Calculator
(For Financing a Portion of the Upfront Guarantee Fee)
Appraised Value of Property being Financed:
Enter Base Loan Amount (Must be less than or equal to the Appraised Value):
Amount of Fee to Be Financed in Loan:
Total Proposed GRH Loan With or Without Guarantee Fee Included
(This value is limited to the maximum Loan based on Appraised Value):
$100,000.00
$100,000.00
$2,827.00
$102,827.00
Select Guarantee Fee Percentage Rate:
2.75%
Guarantee Fee on Proposed Loan:
$2,827.74
Maximum GRH Loan based on Appraised Value:
$102,827.76
Guarantee Fee on Maximum Loan:
$2,827.76
The guarantee fee is always based on the final, full loan amount,
including any fee that may be financed in the loan.