Does usda mortgage insurance drop off at some point in the life of the loan?

No.. USDA MI is for the life of the loan.. the only way to get it removed is to refinance into a different loan product or just pay it off.. 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

Thanks for your question, Cynthia. The USDA's annual Guarantee Fee of 0.50% does stay on for the life of the loan. You do have the ability to refinance into a different loan program afterwards, but unless you are under 80% of the value of the property, you will still have Conventional MI. Even on a Conventional Loan, there is a solid chance that Conventional MI would be higher than the monthly USDA Guarantee Fee. However, the USDA also has a 2.0% upfront premium as well, which can be financed into the loan amount.