This week USDA announced that lenders could continue to fund loans despite a budget shortfall that had threatened to put an early end to 2010 USDA loans. As opposed to being the actual “lender,” the USDA “guarantees” loans by charging borrowers an upfront financed fee, similar to FHA. Before the government subsidy dried up, that fee stood at 2%. To continue the funding, USDA was authorized to raise the fee 3.5% which offsets Uncle Sam’s previous contribution. ...