USDA Loan Calculator
Calculate your USDA Rural Development loan payment with zero down payment. USDA loans are backed by the U.S. Department of Agriculture and offer 100% financing for eligible rural and suburban homebuyers. Enter your details below to see a full payment breakdown including guarantee fees.
USDA Loan Calculator Inputs
Enter USDA Loan Details
Your USDA Loan Results
Estimated Monthly USDA Payment
- Total Monthly Payment
- $1,937.52 /mo
- Principal & Interest
- $1,513.87
- Property Tax
- $250.00
- Home Insurance
- $100.00
- Monthly Guarantee Fee
- $73.65
- Total Interest Paid
- $292,493.20
- Total Cost of Loan
- $688,054.94
USDA Loan Details
- Base Loan Amount
- $250,000.00
- Upfront Guarantee Fee (1.0%)
- $2,500.00
- Total Loan (with Fee)
- $252,500.00
- Annual Fee Rate
- 0.35%
- Monthly Guarantee Fee
- $73.65
- Total Guarantee Fees (Lifetime)
- $19,561.74
- Down Payment
- $0 (Zero Down)
- Interest Rate
- 6.000%
- Income Eligibility
- Within Limit
USDA vs FHA vs Conventional
| USDA | FHA | Conventional | |
|---|---|---|---|
| Down Payment | $0 | $8,750.00 (3.5%) | $8,750.00 (3.5%) |
| Loan Amount | $252,500.00 | $245,471.88 | $241,250.00 |
| Monthly P&I | $1,513.87 | $1,471.73 | $1,446.42 |
| Monthly Insurance Fee | $73.65 | $110.57 | $140.73 |
| Monthly Tax | $250.00 | $250.00 | $250.00 |
| Monthly Insurance | $100.00 | $100.00 | $100.00 |
| Total Monthly Payment | $1,937.52 | $1,932.30 | $1,937.15 |
| Total Interest | $292,493.20 | $284,350.92 | $279,461.20 |
How USDA Loans Work
USDA Rural Development loans are mortgage loans backed by the U.S. Department of Agriculture. They are designed to promote homeownership in eligible rural and suburban areas. The program's most attractive feature is 100% financing — no down payment required.
Instead of mortgage insurance like FHA or PMI like Conventional loans, USDA loans charge guarantee fees: a one-time upfront fee of 1.0% (financed into the loan) and an annual fee of 0.35% of the remaining balance. These fees are generally lower than FHA MIP or Conventional PMI.
USDA Guarantee Fees Explained
Upfront Guarantee Fee
A one-time fee of 1.0% of the base loan amount. Unlike a down payment, this fee is typically financed into the loan. For a $250,000 loan, the upfront fee is $2,500.00.
Annual Guarantee Fee
An ongoing fee of 0.35% of the remaining principal balance, divided into monthly payments. This fee decreases over time as your balance reduces. The first month's fee is $73.65.
USDA Loan Eligibility Requirements
Property Location
The property must be in a USDA-eligible rural or suburban area. Many areas near major cities qualify. Check eligibility at the USDA Property Eligibility site.
Income Limits
Household income cannot exceed 115% of the area median income. For most areas, the limit is $112,450 for 1-4 person households. Higher limits apply in high-cost areas.
Credit Score
USDA does not set a minimum credit score, but most lenders require 640 or higher for automatic underwriting approval. Scores below 640 may require manual underwriting with additional documentation.
Primary Residence
The home must be your primary residence. Investment properties, vacation homes, and income-producing properties are not eligible for USDA financing.
DTI Requirements
USDA uses a 29/41 DTI guideline: front-end DTI of 29% and back-end DTI of 41%. Lenders may allow higher ratios with compensating factors such as strong credit or significant reserves.
Citizenship
Borrowers must be U.S. citizens, U.S. non-citizen nationals, or qualified aliens. The program is available to eligible borrowers regardless of whether they are first-time homebuyers.
The Zero Down Payment Advantage
USDA is one of only two major loan programs that require zero down payment (the other is VA loans for eligible veterans). For a $250,000 home, this means:
- USDA: $0 down — save your $8,750 for closing costs or reserves
- FHA: $8,750.00 down (3.5%)
- Conventional: $8,750.00 down (3.5%) — or up to 20% to avoid PMI
Frequently Asked Questions
What is a USDA loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture's Rural Development program. It offers 100% financing (zero down payment) for eligible homebuyers in rural and suburban areas. The program aims to promote homeownership in less densely populated areas.
How do USDA guarantee fees compare to FHA MIP?
USDA guarantee fees are generally lower than FHA MIP. The USDA upfront fee is 1.0% vs FHA's 1.75%. The USDA annual fee is 0.35% vs FHA's 0.50-0.55%. However, USDA loans finance 100% of the home price (no down payment), so the loan amount is larger, which can offset some of this savings.
Can I use a USDA loan for any property?
No. The property must be located in a USDA-eligible area and must be your primary residence. You cannot use a USDA loan for investment properties, vacation homes, or commercial properties. The property must also meet minimum safety and livability standards.
What happens if my income exceeds USDA limits?
If your household income exceeds the USDA limit for your county, you will not qualify for a USDA loan. Consider FHA loans (3.5% down, no income limit) or Conventional loans (3-20% down). VA loans are also an option for eligible veterans with no down payment requirement and no income limit.
Is USDA only for first-time homebuyers?
No. USDA loans are available to both first-time and repeat homebuyers, as long as you meet the income and property location requirements. However, the home must be your primary residence — you cannot own another adequate home nearby.
Can I refinance a USDA loan?
Yes. USDA offers a Streamline Refinance program that requires no new appraisal, no credit review, and no income verification — just a history of on-time payments. You can also refinance from USDA into a Conventional loan once you have 20% equity to eliminate mortgage insurance entirely.
What are the current USDA guarantee fee rates?
As of 2024, USDA guarantee fees are: 1.0% upfront (financed into the loan) and 0.35% annual fee based on the remaining principal balance. These rates were last reduced in October 2016 and have remained unchanged since.