FSA guaranteed loan origination fee to increase in October

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SALEM, Ohio — Effective Oct. 1, the one-time loan origination fee charged on FSA guaranteed farm ownership and operating loans will increase from 1 percent to 1.5 percent of the guaranteed portion of the loan (loan amount x percent guaranteed x .015).

This represents the first loan origination fee increase since the program’s inception. The fee increase, necessitated by budget constraints, will help FSA maintain the amount of guaranteed credit available.

Loans obligated prior to Oct. 1 will be charged the current 1 percent fee, regardless of when the loan is closed.

Consistent with current policy, the loan origination fee will not be charged on guaranteed loans issued to farmers or ranchers participating in FSA’s Downpayment Program, a qualified State Beginning Farmer Program, refinancing FSA direct loans, or participating in the Guaranteed Operating Loan Interest Assistance Program.

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