Our system is adding the USDA guarantee fee into the loan amount and it is showing in the loan amount on 1st page of the LE and it also have the fee in the Section B on page 2 of the LE.

For example, the loan amount is $116,000. the USDA fee is $1,172. The loan amount on 1st page is showing $117,172 and the fee is showing $1,172 on the second page.

We don't usually deal with USDA loans much but my thought process was that you had to show the exact loan amount without any fees in it because it will be listed on the second page.

Thoughts?

Are you financing the fee? The loan amount on page one is your proposed note amount. How much are you lending them?

We are lending them $116,000 but on the Loan Estimate, it is showing $117,171. Yes, we are financing the fee.

Because you're financing the fee, it needs to be added to the loan amount shown on page one.

Then you are lending them $117,171.

Are USDA loans coded as Conventional (1) or (4) FSA/RHS on the LAR?

(4)

Thanks so much!