Yes. USDA's guarantee fee applies no matter how much you put down, so 20% down does not remove it the way it removes conventional PMI. USDA's version of mortgage insurance is the guarantee fee, and it comes in two parts: an upfront fee financed into the loan and an annual fee collected monthly. The structure parallels FHA's upfront and annual premiums, though USDA's fees are priced lower, and the annual fee stays for the life of the loan rather than dropping off at an equity threshold. USDA attaches the cost to the loan itself, so your equity position does not make it go away. That quirk raises the better question: with 20% to put down, should you be on USDA at all? On conventional financing, 20% down means no mortgage insurance. USDA's biggest draw is its zero-down structure for eligible rural areas and incomes, and that advantage matters a lot less when you are bringing a large down payment. The exact fee amounts change over time, so confirm the current figures with a lender who does USDA regularly, and have them price a conventional option next to the USDA loan. With a sizable down payment, conventional often wins that all-in comparison.