CHAPTER 6: PROGRAM FEES

HB-1-3565

6.1 OVERVIEW

This chapter provides information on the type and amount of fees the Agency

may charge to lenders. The chapter will also explain when fees should be collected and

who is responsible for submitting payment. Exhibit 6-1 provides an overview of each fee

discussed in this chapter. Exhibit 6-2 details the fee structure for the Initial and Annual 

Guarantee fees. None of the fees are refundable. Any changes to the program fees will 

be announced in a Notice published in the Federal Register. The Agency should be 

contacted for information on the current fee policy.

When fees are applicable, lenders must submit payment electronically to the 

Agency. All fees due to the Agency can be submitted via Pay.gov using a PreAuthorized Debit (PAD) once the Guaranteed Loan System (GLS) or the USDA Lender 

Interactive Network Connection (LINC) has been updated with the Lender’s banking

information. Lenders should contact the Production and Preservation Division, Closing 

Branch for instructions on submitting the fees electronically.

Exhibit 6-1

Loan Guarantee Fees

(unless a different fee has been announced in a Notice published in the Federal Register)

FEE SUBMISSION AMOUNT EXAMPLE TOTAL

Initial Guarantee

Fee

At the time the guaranteeis

issued

Total loan amount 

times the initial 

guarantee fee times the 

% of the Agency’s 

guarantee (Initial 

guarantee fees range 

from .60% to .65%. 

See Exhibit 6-2)

$1,000,000 x

.0065 x 0.90 =

$5,850

Annual

Guarantee Fee

This fee will be collected,in 

advance, no later than

February 28th of each

calendar year

Outstanding principal

amount of

the loan times the 

annual guarantee fee

(Annual Guarantee fees

range from .25% to 

.35%. See Exhibit 6-2)

$1,000,000 x

.0035 =

$3,500

Application Fee When application is submitted Flat Fee $2,500

Extension Fee When the request is made Flat Fee First

Request: 

$1,500

Subsequent 

Requests:

$2.500

Reopening Fee When the request is made Flat Fee $3,500

Transfer of

Ownership Fee

When the request is made Flat Fee $1,500

6-1

(02-23-12) PN 455

Revised (04-04-22) SPECIAL PN
HB-1-3565

6.2 FEES ASSOCIATED WITH THE LOAN GUARANTEE

When fees are applicable, the lender pays all fees associated with the loan

guarantee to the Agency. The initial guarantee fee is paid immediately prior to the

issuance of a loan note guarantee. If the fee is paid using Pay.gov, Treasury will debit 

the fee two business days from the time the loan closing is processed in GLS. A 

description of the fees and submission requirements are described below.

A. Initial Guarantee Fee

The initial guarantee fee is the non-refundable financing fee a lender must 

pay tothe Agency for the loan guarantee. The initial guarantee fee is a one-time 

fee based on apercent of the guarantee amount. The initial guarantee fee must be 

paid to the Agency at the time of issuance of the loan note guarantee.

B. Annual Guarantee Fee

The annual guarantee fee is a non-refundable fee the lender must pay in 

advance for each year that the loan guarantee will remain in effect. (Example: A 

loan that closes on December 31, 2021 will incur the annual fee for 2022).

The fee is calculated as of December 31st and it is due to the Agency no later than

February 28th. The lender pays an annual guarantee fee based on a percent of the 

outstanding total principal amount of the loan each year.

Initial Guarantee Fee Annual Guarantee Fee

Standard Fee Structure 0.65% 0.35%

Workforce Housing – Rents 

between 80% -115% AMI

0.60% 0.25%

Preservation of Existing Section 

515, 514/516 Rural 

Development Properties 

0.60% 0.25%

Section 538 New 

Construction/Substantial Rehab 

w/Green

0.60% 0.25%

C. Surcharge for Guarantees on Construction Advances

If a surcharge will be assessed, it will be announced in a Notice published in the Federal

Register.

6-2

Exhibit 6-2

Initial and Annual Guarantee Fees

(unless a different fee has been announced in a Notice published in the Federal Register)
HB-1-3565

6.3 ADDITIONAL AGENCY FEES

There are other fees that may be incurred by the lender or borrower during the life

of the guarantee. The following is a list of fees and times when these fees are due.

A. Application Fee

When fees are applicable, the Agency will charge the lender a flat

application fee. The fee will be used to help defray the administrative costs

associated with processing the application. This non-refundable fee is to be paid

when the application is submitted. If a fee is applicable, an application will not be

processed until the fee is received by the Agency.

B. Extension and Reopening Fees

The Agency may charge the lender a flat fee for a term extension of the

Agency commitment. The fee is due at the time the request for the term extension

is made. This non-refundable fee will cover administrative costs associated with

the process of extending the Agency commitment.

If the Agency commitment expires and the Agency decides to reopen the

commitment, the lender must pay a flat fee for each reopening at the time the

request is made. This non-refundable fee is used to cover administrative costs

associated with reopening the Agency commitment.

C. Transfer of Ownership Fee

The Agency may charge the lender a transfer fee for administrative costs

associated with the transfer of the property from one owner to another one. A

non-refundable fee will be collected at the time a transfer request is submitted.

The Agency fee will be in addition to any fee the lender may charge to cover the

lender's administrative costs associated with the transfer process.

6-3

(02-23-12) PN 455

Revised (04-04-22) SPECIAL PN