Is a guaranteed fee required for a $200,000 loan, with $140,000 used to refinance direct FSA debt?

The correct understanding in this scenario hinges on the specific provisions related to the guaranteed loan program. When a borrower refinances existing support, such as direct Farm Service Agency (FSA) debt, the guaranteed fee may not be required for that portion of the loan aimed solely at refinancing.

In this case, since $140,000 is being used explicitly for refinancing existing FSA debt, it follows that that portion is not subject to a guaranteed fee. This is in alignment with the guidelines that typically exempt certain refinancing operations from incurring this fee, particularly when the refinancing aims to consolidate or restructure existing obligations with the intent of reducing the financial burden on the borrower.

For the entirety of the loan amount, if any part of the loan were being utilized for new purposes or additional borrowing beyond refinancing existing debts, then that portion might have a different fee structure. However, since the focus here is on refinancing directly related FSA debt, it is clear that a guaranteed fee is not a requirement in this context.