General Mortgage KnowledgeQuestion 169 of 400
USDA guaranteed loans charge an upfront guarantee fee and an annual fee. These fees are most similar in purpose to which of the following?
a.FHA's upfront and annual MIP
b.A discount point
c.Property taxes
d.Homeowner's association dues
Explanation
Like FHA's upfront and annual MIP, USDA's upfront guarantee fee and annual fee fund the program's insurance against default. They are not discount points, property taxes, or HOA dues.
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