Does usda mortgage insurance drop after 20% equity like a fannie loan?

there is no mortgage insurance on USDA ... i have a very experienced loan officer in your area... referral yourloanpartnerforlife@live.com

USDA requires a 2% upfront guarantee fee and an annual fee. The one time guarantee fee is 2.0% of the gross loan amount and this amount is added to your loan amount. The annual fee is 0.40% of the loan amount divided by 12 and paid monthly for the life of the loan. For example 0.40% of $200,000 loan is $800 / 12 = $67 per month. Even though USDA requires mortgage insurance, .040% is much less than alternate mortgage programs like FHA which is at 1.35% or $225 per month. Unfortunately with both USDA and FHA, it will be there for the life of the loan. The only way to remove it would be to pay off the loan, or refinance it with a conventional loan product. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

No, USDA requires the mortgage insurance of 0.40% for the life of the loan. It is raising to 0.50% after October, so if you are in the market it would be best to get your loan locked in before the change if you decide to go with the USDA. USDA up front is a great loan because of the 100% financing and the low interest rate. The only way to remove the mortgage insurance is to refinance out of it into a conventional loan. Would be a good idea to speak with a local loan officer who can give you all of your options so you can compare the cost vs. benefit for each. Best wishes, Sean