There is a funding fee for Rural Development loans. It used to be ~2% but there was talk of raising it to ~4% with the new appropriation from Congress. I haven't heard the details on the new bill that was recently passed so I can't tell you for sure but that number doesn't seem completely out of line. Ask your lender for a breakdown on exactly what the $6700 is for.
If their answer is that it is the RD funding fee, that's just the price you pay for a 100% loan with no mortgage insurance with the option of rolling closing costs into the loan. There isn't really any other widely available mortgage product with all of those features.... more