How this calculator works
USDA loans are 30-year fixed with no down payment. The upfront guarantee fee is added to the loan amount, and the annual fee is charged on the loan and split into monthly payments. Property tax and insurance are added to show the full monthly cost.
Worked example
With the example values below: Monthly payment, $2,160 (30-year fixed, 0% down). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home price | $280,000 |
| Interest rate | 6% |
| Upfront guarantee fee | 1% |
| Annual fee | 0.35% |
| Property tax rate | 1.1% |
| Homeowners insurance / yr | $1,500 |
What a USDA loan is
USDA loans are 30-year fixed-rate mortgages backed by the US Department of Agriculture's Rural Development program. The guaranteed loan program lets approved lenders offer 100% financing, so no down payment is required, to moderate-income buyers in eligible rural and many suburban areas.
USDA loans charge a 1% upfront guarantee fee, usually added to the loan, and an annual fee of 0.35% of the balance, paid monthly. That annual fee is typically cheaper than FHA mortgage insurance or conventional PMI.
Eligibility rules
Because income limits are based on household size and county, a family that's over the limit in one area may qualify in another.
- Location: the property must be in a USDA-eligible area; check an address on the USDA eligibility map. Many areas outside major cities qualify.
- Income: household income generally can't exceed 115% of the area median income, and all adult household members' income counts.
- Occupancy: the home must be your primary residence.
- Credit and debt: most lenders look for a credit score around 640 and debt ratios near 29% for housing and 41% total.
USDA vs. FHA vs. conventional
For eligible buyers with little cash saved, USDA often has the lowest monthly cost: no down payment and a low annual fee. An FHA loan requires 3.5% down and charges higher mortgage insurance but has no location or income limits. A conventional loan with 3% to 5% down has PMI that falls off once you reach 20% equity, while the USDA annual fee lasts for the life of the loan.
If you're a veteran, compare a VA loan too, which also allows zero down with no monthly fee.
Costs to plan for
Even with no down payment, you'll need cash for closing costs, though USDA allows seller concessions and, in some cases, financing closing costs if the appraisal comes in above the price. Use the closing cost calculator to estimate them and keep an emergency fund for repairs after you move in.
Frequently asked questions
What are the USDA loan fees?
A 1% upfront guarantee fee, usually financed into the loan, and a 0.35% annual fee charged monthly for the life of the loan. On a $280,000 loan, the annual fee is about $82 a month.
Do USDA loans require a down payment?
No. USDA guaranteed loans allow 100% financing for eligible buyers and properties.
What are the USDA income limits?
Household income generally can't exceed 115% of the area median income, which varies by county and household size. Check the USDA eligibility site for your area.
How do I know if a home is USDA eligible?
Enter the address on the USDA Rural Development property eligibility map. Many small towns and outer suburbs qualify, not just farmland.
Can USDA mortgage insurance be removed?
No. The 0.35% annual fee lasts for the life of the loan. To remove it, you'd need to refinance into a conventional loan once you have enough equity.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.