Does a USDA loan in Washington require mortgage insurance?

USDA loans include a guarantee fee rather than traditional mortgage insurance. There's an upfront fee of 1% of the loan amount (financed into the loan) and an annual fee of 0.35% of the remaining loan balance, paid monthly. Both fees are significantly lower than FHA mortgage insurance and make USDA one of the most affordable low-down-payment loan options for eligible buyers. The annual fee drops as the loan balance decreases over time.