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Use our free USDA loan calculator to see your full monthly payment with taxes, insurance, and fees. Great for low-income rural homebuyers.
| Principal & Interest | $2,621 |
| Property Tax | $833 |
| Home Insurance | $208 |
| USDA MIP 0.35% | $117 |
| Purchase Price | $500,000 |
| USDA Guarantee Fee | $4,040 |
| Total USDA Payments | $985,637 |
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.
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.
When you use our USDA loan calculator, you can input:
This provides you with a more realistic monthly mortgage estimate.
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.
Pros:
Cons:
To qualify for a USDA loan, you must meet the following criteria:
The process is similar to any other mortgage loan:
If you’re working with a trusted loan officer and real estate agent, they’ll guide you through every step of the process.
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.
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.
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.
No. USDA loans allow 100% financing, which means no down payment is required.
No. The property must be in a USDA-eligible area. These are typically rural or low-density suburbs.
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.
USDA loans have an annual fee of 0.35%, divided into monthly installments. It’s less expensive than FHA insurance.
Yes. USDA offers streamlined refinancing for current USDA loan holders looking to lower their monthly payment.
No. While requirements vary by lender, a score of 640 or above is generally preferred for automated approval.
No. You don’t have to be a first-time buyer, but you must not currently own a suitable home.
TIP • Click a rate to use it on the appropriate calculator. We round it to the nearest eighth.
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