Rural Guaranteed Loan Program Update

Funding Notice From the National Office in Washington, DC - Congress recently passed legislation which has provided USDA (United States Department of Agriculture) with the authority to resume operating the Single Family Housing Guaranteed Loan Program (SFHGLP) at no cost to taxpayers. This loan is available through approved USDA lenders.

The new legislation increases the up-front fee from 2% to 3.5% of the principal loan balance. The legislation also gives USDA authority to charge a new annual fee up to 0.5% of the outstanding principal balance.

The 3.5% up-front fee is sufficient at the current subsidy rate and the annual fee may be introduced in later years to keep the USDA Program at zero cost to the taxpayers.