USDA Loan Calculator

The USDA Loan Calculator computes monthly payments for USDA Rural Development home loans, including the upfront guarantee fee and annual fee. USDA loans offer 100% financing (zero down payment) for eligible borrowers purchasing homes in designated rural and suburban areas.

USDA loans are backed by the U.S. Department of Agriculture and are designed to promote homeownership in rural communities. Despite the name, many eligible areas are suburban — approximately 97% of the U.S. land mass is USDA-eligible, including many areas near cities. The program has income limits (typically 115% of the area median income) and geographic eligibility requirements.

USDA loans charge two types of fees: an upfront guarantee fee of 1.0% of the loan amount (typically rolled into the loan) and an annual fee of 0.35% (paid monthly). These fees are significantly lower than FHA MIP, making USDA loans one of the most affordable zero-down options available for eligible borrowers.

Eligibility requirements include: the property must be in a USDA-eligible area, the borrower's household income must not exceed 115% of the area median income, the borrower must be a U.S. citizen or permanent resident, and the home must be a primary residence. There is no minimum credit score set by the USDA, though most lenders require 640+.

USDA loans offer competitive interest rates, often comparable to VA loans. Combined with zero down payment and low fees, they represent an excellent option for qualifying borrowers. This calculator includes the guarantee fee in the loan balance and shows the true monthly cost including the annual fee, taxes, and insurance.