Is a guaranteed fee required for a guaranteed FO used to refinance another lender?

A guaranteed fee is indeed required for a guaranteed Farm Operating loan (FO) used to refinance another lender. This fee is a standard part of the process when seeking a loan guarantee from the U.S. Department of Agriculture (USDA). The purpose of the guaranteed fee is to assist in covering the costs associated with the loan guarantee program, ensuring that the program can continue to provide support to agricultural producers effectively.

In the context of refinancing, the guaranteed fee helps mitigate risk for the USDA while promoting access to funding for farmers who may be seeking better terms or rates by consolidating loans. This requirement applies regardless of the lender being refinanced, emphasizing the uniformity in the rules governing these loans for all borrowers.

While there may be nuances in fees based on specific scenarios, the overarching principle is that a guaranteed fee is required when utilizing a loan guarantee for refinancing purposes.