USDA does not use traditional PMI. Instead, Guaranteed loans charge an annual fee — currently about 0.35% of the outstanding balance — collected monthly with your payment. Ryan and Steve break out that line item so you see true PITIA before you shop.
One recurring charge — smaller than most FHA MIP — baked into your monthly housing payment.
Buyers often ask whether USDA is “free” after zero down. The annual fee is the main ongoing cost to understand.
On a $250,000 USDA loan balance at 0.35% annual:
Ryan and Steve make the annual fee visible early — so USDA vs FHA vs conventional is an honest monthly comparison, not a surprise after appraisal.
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Related guides to help you compare costs and move toward pre-approval.
How the upfront guarantee fee and annual fee replace traditional MI.
What $0 down means — and what cash to close still looks like.
How the annual fee factors into front-end DTI and qualifying.
Requirements, calculator, and program details.
2MG Daily
Recent articles on USDA loans, fees, and rural financing.
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Send Ryan & Steve your purchase price and county — we will model the 0.35% annual fee, compare USDA to FHA, and show the real monthly number before you shop.