USDA Loan Calculator
Calculate your monthly USDA rural home loan payments with zero-down financing, guarantee fees, and annual fees.
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Enter your loan details and click Calculate to see your estimated USDA loan payments.
What Is a USDA Loan?
A USDA Rural Development Loan is a government-backed mortgage program administered by the U.S. Department of Agriculture. Designed to promote homeownership in eligible rural and suburban areas, USDA loans offer 100% financing — meaning no down payment is required for qualified buyers.
USDA loans are available to low-to-moderate income borrowers who meet eligibility requirements. The program is not limited to first-time homebuyers, but the property must be located in a USDA-eligible area and be used as the borrower's primary residence.
Key Benefits
- Zero down payment — 100% financing for eligible buyers
- Lower interest rates compared to conventional loans due to government backing
- No PMI — USDA uses a guarantee fee instead, which can be more affordable
- Flexible credit requirements — typically more forgiving than conventional loans
- Seller can pay closing costs — reducing your out-of-pocket expenses
Program Costs
USDA loans have two main fees: an upfront guarantee fee of 1% of the loan amount (which can be rolled into the loan) and an annual fee of 0.35% of the average principal balance, paid monthly. These fees fund the USDA loan guarantee program and replace traditional mortgage insurance.
USDA vs FHA vs Conventional Loans
Comparing USDA loans to other common mortgage options helps you choose the right financing for your situation.
| Feature | USDA Loan | FHA Loan | Conventional Loan |
|---|---|---|---|
| Down Payment | 0% (100% financing) | 3.5% minimum | 3%–20% |
| Mortgage Insurance | 1% upfront + 0.35% annual (guarantee fee) | 1.75% upfront MIP + 0.55%–1.05% annual MIP | PMI if down payment < 20% |
| Credit Score Min | Typically 620–640 | 580 (500 with 10% down) | 620–660 |
| Location Restriction | USDA-eligible rural/suburban areas | None | None |
| Income Limits | ≤115% of area median income | None | None |
| Property Type | Owner-occupied primary residence | Owner-occupied primary residence | Any occupancy type |
Frequently Asked Questions
⚠️ Important: USDA loan eligibility depends on property location, income limits, and occupancy requirements. This calculator provides estimates. Consult a USDA-approved lender for personalized rate quotes and eligibility verification.