Finance

A NH homebuyer who is purchasing a property in a USDA-eligible rural area with no down payment should expect to pay:

ANo fees of any kind since USDA loans are free
BAn upfront guarantee fee and an annual fee (similar to mortgage insurance)✓ Correct
CPMI as with conventional loans
DFHA mortgage insurance premiums

Explanation

USDA Rural Development loans charge an upfront guarantee fee (1% of the loan amount) and an annual fee (0.35% of the outstanding balance) — similar to FHA's UFMIP and annual MIP — in lieu of private mortgage insurance.

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