---
title: How to Set Up USDA Monthly Guarantee Fee in Escrow
description: PUBLISHED
---

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October 1, 2026

# How to Set Up USDA Monthly Guarantee Fee in Escrow

## This article explains how to set up the USDA Monthly Guarantee Fee (disclosed as Mortgage Insurance) for Disclosure.

<iframe src="https://scribehow.com/embed/How_to_Set_Up_USDA_Monthly_Guarantee_Fee_in_Escrow__NAYARjt6QPSiqHmNko868Q?as=video" width="100%" height="800" allow="fullscreen" style="position: absolute; top: 0px; left: 0px; width: 100%; height: 100%; border: none;"></iframe>

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### Step 1. Set Mortgage Insurance In Escrow to Yes

1. Go to **Loan Additional \> Mortgage Insurance**.
2. Set **In Escrow** to **Yes**.
3. Click **Save**.

---

### **Step 2. Add Mortgage Insurance in Disclosures**

1. Go to **Disclosure \> Cost Details**.
2. Click the **Edit pencil** next to **Section G. Initial Escrow Payment at Closing**. This opens the Section G edit screen.
3. Click **Add New Escrow** in the top right corner.
4. From the **Escrow dropdown list**, select **Mortgage Insurance**.
5. Enter the **number of months** you will collect as escrow reserves.
6. Click **Save** — the fee will now appear in **Section G. Initial Escrow Payment at Closing**.

---

### Troubleshooting & Tips

##### **Negative Aggregate Adjustment**

If you see a negative adjustment (even after clicking **Set Default**):

- Review the **Due Date** and **Payment box** for each escrow item to confirm the next payment date, number of months, and monthly payment are entered correctly.
- Go to **Disclosure \> Cushion Details** to review the year’s projected escrow activity. This may help explain why the adjustment appears negative.
- Make corrections as needed before continuing.

##### **DocMagic Error**

 If you get a “ ***low escrow account balance***” error when generating documents:

- Check that **Mortgage Insurance** is added in **Section G. Initial Escrow Payment at Closing**.
- Verify that **In Escrow = Yes** under **Loan Additional \> Mortgage Insurance**.
- Ensure a **Due Date** is set for the escrow item.
- After making updates, re-run the document package. If the issue persists, check with **DocMagic support** or program guidelines.

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