USDA Loan Calculator

Use our free USDA loan calculator to see your full monthly payment with taxes, insurance, and fees. Great for low-income rural homebuyers.

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USDA Guaranteed Term

Tax & Insurance

USDA
Payment

$3,780
Principal & Interest$2,621
Property Tax$833
Home Insurance$208
USDA MIP 0.35%$117

USDA
Loan

$404,040

Purchase Price $500,000
USDA Guarantee Fee$4,040
Total USDA Payments$985,637

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How much is a $500,000 USDA house payment?

A $500,000 home with no down payment, 6.75% interest rate, and 30 year term results in a USDA loan payment of $2,738 before taxes and insurance.

USDA loans require taxes and insurance be included in your payment.

Total Payment: $3,780*

*Includes monthly tax and insurance of $833 and $208, respectively.

USDA Loan Calculator Overview

Our USDA loan calculator helps you estimate your monthly mortgage payment accurately by factoring in all the critical components of a USDA loan, including the upfront guarantee fee, annual mortgage insurance (paid monthly), property taxes, and homeowner’s insurance. If you're buying in an eligible rural area and meet income requirements, a USDA loan could be one of the most affordable paths to homeownership, with no down payment required.

What’s Included in the USDA Loan Calculator

When you use our USDA loan calculator, you can input:

  • Home purchase price
  • Loan term (must be 30 years unless it’s USDA Direct, which is 33 or 38 years.)
  • Interest rate
  • Property taxes
  • Homeowners insurance
  • USDA upfront guarantee fee
  • USDA annual mortgage insurance (paid monthly)

This provides you with a more realistic monthly mortgage estimate.

USDA Loan Definitions

  • Principal: The portion of your payment that reduces the balance you owe on your loan.
  • Interest: Charged daily, interest is the cost of borrowing money and is paid before your principal.
  • Upfront Guarantee Fee: A one-time fee (typically 1% of the loan amount) that is added to the total loan balance.
  • Annual Mortgage Insurance (MIP): Paid monthly; it’s lower than FHA mortgage insurance and helps fund the USDA program.
  • Property Taxes & Homeowners Insurance: Usually collected monthly and placed in escrow to ensure they’re paid on time by your lender.
  • Escrow/Impound Account: Where your lender holds the funds for property taxes and insurance premiums.

What Is a USDA Loan?

A USDA loan is a government-backed mortgage designed to help low- to moderate-income buyers purchase a home in eligible rural and suburban areas. These loans are issued by approved lenders and guaranteed by the U.S. Department of Agriculture. The program offers benefits such as no down payment, reduced mortgage insurance, and competitive interest rates.

If you’ve been priced out of the market or are struggling to save for a down payment, USDA loans might offer a solution, provided your household income falls under USDA limits and the property is in an eligible location.

Key Features of USDA Loans

  • Zero down payment required
  • Competitive interest rates
  • Low monthly mortgage insurance (MIP)
  • Flexible credit guidelines
  • Property must be in a USDA-eligible area
  • Household income must meet local income limits

Pros and Cons of USDA Loans

Pros:

  • No down payment required
  • Lower mortgage insurance than FHA loans
  • Competitive interest rates
  • Easier credit qualifications
  • Can finance closing costs in some cases

Cons:

  • Income limits apply
  • Property must be in a USDA-eligible area
  • Only available for primary residences
  • Longer processing times compared to conventional loans
  • Limited lender availability in some regions

USDA Loan Eligibility Requirements

To qualify for a USDA loan, you must meet the following criteria:

  • The home must be in a USDA-eligible location.
  • Your income must fall within USDA’s local limits based on family size.
  • The home must be your primary residence.
  • You must be a U.S. citizen or an eligible non-citizen.
  • You must demonstrate the ability to repay the loan (typically includes proof of income, an acceptable debt-to-income ratio, and stable employment).

How to Get a USDA Loan

The process is similar to any other mortgage loan:

  1. Check eligibility based on your income and property location
  2. Get pre-approved by a USDA-approved lender
  3. Find a home in a USDA-eligible area
  4. Submit your application with all required financial documentation
  5. Close on your loan and move into your new home

If you’re working with a trusted loan officer and real estate agent, they’ll guide you through every step of the process.

USDA Guaranteed vs. USDA Direct Loans

USDA Guaranteed Loans

The USDA Guaranteed Loan program: is the most common type of USDA mortgage. It’s issued by approved lenders and backed by the U.S. Department of Agriculture, making it more accessible to moderate-income homebuyers in eligible rural and suburban areas. Borrowers benefit from zero down payment requirements, competitive interest rates, and flexible credit standards. This program is ideal for those who meet income and property eligibility guidelines but do not require direct financial assistance from the government.

USDA Direct Loans

The USDA Direct Loan program, also known as the Section 502 Direct Loan: is designed for low- and very-low-income borrowers who may not qualify for traditional financing. Unlike Guaranteed Loans, these mortgages are issued directly by the USDA. They offer even lower interest rates (as low as 1% with payment assistance), longer terms (up to 38 years), and are meant to promote homeownership among the most underserved populations. Our USDA loan calculator is one of the only tools online that accurately supports Direct Loan term options.

FAQs About USDA Loans

1. Who qualifies for a USDA loan?

Eligible borrowers must meet income limits and purchase a home in a USDA-approved rural or suburban area. These limits vary by location and household size.

2. Is a down payment required?

No. USDA loans allow 100% financing, which means no down payment is required.

3. Can I buy any home with a USDA loan?

No. The property must be in a USDA-eligible area. These are typically rural or low-density suburbs.

4. What is the USDA upfront guarantee fee?

It’s a one-time fee, generally 1% of the loan amount, that is added to the total loan and helps fund the USDA program.

5. What is the monthly mortgage insurance for a USDA loan?

USDA loans have an annual fee of 0.35%, divided into monthly installments. It’s less expensive than FHA insurance.

6. Can I refinance a USDA loan?

Yes. USDA offers streamlined refinancing for current USDA loan holders looking to lower their monthly payment.

7. Do USDA loans require perfect credit?

No. While requirements vary by lender, a score of 640 or above is generally preferred for automated approval.

8. Are USDA loans only for first-time buyers?

No. You don’t have to be a first-time buyer, but you must not currently own a suitable home.