USDA Guaranteed Loan Fees and Income Limits in FY2026

USDA's Single Family Housing Guaranteed Loan Program (SFHGLP) charges an upfront guarantee fee and an annual fee. For fiscal year 2026, USDA's Conditional Commitment Notice confirms the same subsidy-neutral rates used in recent years. Income eligibility is separate: limits vary by county and household size and must be checked on USDA's live eligibility tools at application time.

What are the FY2026 guarantee fees?

USDA announced for FY 2026 (purchase and refinance):

• Upfront guarantee fee: 1.00% of the loan amount
• Annual fee: 0.35% of the average scheduled unpaid principal balance

HB-1-3555 Chapter 16 describes how borrowers may pay the upfront fee (finance into the loan, pay at closing from personal funds, seller concessions, or eligible gift assistance) and how servicers remit the annual fee to the Agency.

The program also charges a technology fee (currently $25 per USDA program materials); confirm the current amount in Chapter 16 before quoting borrowers.

Rates can change when USDA publishes a new fiscal-year conditional commitment notice to keep the program budget neutral.

How do borrowers pay the upfront fee?

Per HB-1-3555 Paragraph 16.4, common options include:

• Finance part or all of the upfront fee into the loan amount (financing the full fee can make the loan exceed appraised value by the fee amount).
• Pay the fee at closing from borrower funds, seller concessions, or eligible gift assistance.

Disclose how the fee affects loan amount and monthly payment when it is financed.

How do income limits work in FY2026?

USDA income limits are area-specific and based on household size. At loan approval, adjusted annual household income must not exceed the applicable moderate-income limit for the property county.

USDA publishes limit charts on:

• The USDA Income and Property Eligibility site
• GUS, when running eligibility

Limits can change when USDA publishes revised charts, typically tied to federal fiscal year updates and periodic eligibility site refreshes. Do not rely on a static dollar figure from a blog post; pull the limit for the property address and household size at pre-qualification and again at approval.

National baseline examples USDA uses in program training materials for FY2026 outreach (verify county-specific limits on the eligibility site):

• 1-4 member households: often $119,850 in standard counties
• 5-8 member households: often $158,250 in standard counties

High-cost counties may exceed these baselines.

Broker checklist

1. Confirm fees against the current FY conditional commitment notice and HB-1-3555 Chapter 16 before disclosing costs.
2. Run eligibility on the USDA site or GUS for every file; income limits are not one national number.
3. Document adjusted income per Chapter 9 and lender requirements (FNMA 1008/FHLMC 1077 or equivalent where required).
4. Subscribe to USDA GovDelivery for fee and handbook notices when the Agency changes conditional commitment terms.

Where to verify

• FY2026 Conditional Commitment Notice (USDA GovDelivery)
• USDA Income and Property Eligibility
• HB-1-3555, Chapters 8-9 (eligibility/income) and Chapter 16 (fees)

For more operational guidance, see the Mortgage Broker Operations hub.

This article is for informational purposes only and is not professional advice. Always verify against current guidelines before making decisions.