How do I add the USDA Guarantee and Annual Fees?

USDA mortgage insurance is available for Fannie Mae 3200, Freddie Mac 3200, or inhouse, monthly, installment, fixed rate transactions with 360 payments and Single Family Dwelling, 2-4 Family Dwelling, Condo or PUD collateral.

On the Calculations page under the Mortgage Insurance section you can indicate if USDA Mortgage Insurance Applies. Selecting this will support the calculations necessary to accommodate the USDA Rural Housing guarantee program.

Clicking Calculate will automatically generate a Mortgage Insurance fee for you and will be visible in the Fees section above the Mortgage Insurance and will reflect the Collect As, POC, Fee Refundable, Points and Fees – State and Variance Type settings made in the USDA Guarantee Fee section. If a change to the Mortgage Insurance amount is required, you must update the information in the Mortgage Insurance section.

The USDA Annual Fee is paid to the USDA one year after the funding date and every year thereafter for the life of the loan. This fee is an escrowed item because it is collected with each monthly payment and cannot be paid early. This fee affects the APR.

Clicking Calculate will automatically generate a Mortgage Insurance escrow item for you and will be visible in the Escrow section below the Mortgage Insurance and will reflect the Payment Frequency and Cushion settings made in the Mortgage Insurance Escrow section. If a change to the Mortgage Insurance amount is required, you must update the information in the Mortgage Insurance section. If there is a cushion identified a separate Mortgage Insurance fee is created to reflect the initial escrow payment.

Note: ComplianceOne mortgage does not produce the required documentation to support the USDA Rural Housing Program; lenders must produce the relevant documentation outside of the product. These documents are available from the USDA.