USDA Loan Calculator
Calculate a USDA Rural Development mortgage payment with the real fee math — 1% upfront guarantee fee, 0.35% annual fee, and full PITI. Built for the 0%-down USDA Guaranteed program.
Loan Details
USDA Guaranteed loans require no down payment.
Total Monthly Payment (PITI + USDA Annual Fee)
$2,220
Includes $82 USDA annual fee (0.35% annualized)
Monthly Payment Breakdown
Base Loan
$280,000
Upfront Fee (1%)
$2,800
Total USDA Fees Paid
$22,222
Total Interest
$360,696
Two eligibility tests apply.
The property must sit in a USDA-eligible rural area (check the official USDA eligibility map), and the household's adjusted income must be at or below 115% of the area median income for the county. Both rules must be met before underwriting begins.
Who Qualifies for a USDA Loan
USDA mortgages — formally called Rural Development loans — are backed by the U.S. Department of Agriculture to support homeownership in rural and small-town America. Eligibility comes down to two tests, both of which must be met.
- Property location. The home must sit in a USDA-eligible rural area. Check any address against the official USDA property eligibility map. You’ll be surprised how many suburbs of mid-sized cities qualify — “rural” under USDA’s definition is broader than the word suggests.
- Household income.Adjusted household income (including everyone living in the home, not just the borrowers) must be at or below 115% of the area median income for the county. USDA publishes county-specific limits and updates them yearly. Income is calculated after specific adjustments — dependents, child care, certain disability expenses — so “adjusted” income is usually meaningfully lower than gross.
Beyond those two eligibility tests, you still need a lender to approve you on credit and debt-to-income. Most USDA-approved lenders want a credit score of at least 640 for the streamlined process, though USDA itself has no official minimum. DTI is generally capped near 41% with some flexibility.
Two USDA Program Types
USDA actually runs two different loan programs, and they serve different audiences.
- USDA Guaranteed (Section 502 Guaranteed)— the program this calculator models. The loan is issued by a private lender (bank, credit union, or mortgage company) and USDA backs the loan against default, similar to how FHA works. This is the more common path and the one most borrowers mean when they say “USDA loan.” Income limit is 115% of AMI.
- USDA Direct (Section 502 Direct) — the loan is issued directly by USDA, not a private lender. It targets low- and very-low-income households (income below 80% of AMI for low-income, below 50% for very-low). Subsidized rates can go as low as 1% with payment assistance. Processing is slower and the program is less broadly available.
Most readers of this calculator are looking at Guaranteed. If your household income is well below the 80%-of-AMI threshold, ask a local USDA office about Direct — the payment assistance can be life-changing for the right family.
USDA vs. FHA vs. VA
For eligible borrowers, USDA is usually the cheapest low-down-payment option — but eligibility is narrower than FHA, and VA is unbeatable if you qualify.
| Program | Min. Down | Upfront Fee | Monthly Fee | Key Catch |
|---|---|---|---|---|
| USDA | 0% | 1.00% | 0.35% annual | Rural property + income limits |
| FHA | 3.5% | 1.75% | 0.50–0.55% annual | MIP often lasts the life of the loan |
| VA | 0% | 1.25–3.30% | None | Military/veteran eligibility required |
If you qualify for VA, that’s almost always the cheapest option (no monthly fee at all). If not, and your target property is in a USDA-eligible area and you’re under the income limit, USDA usually beats FHA on monthly cost. Otherwise FHA is the backstop. Compare against the FHA loan calculator and VA loan calculator using the same loan size to see the side-by-side numbers.
Frequently Asked Questions
Do USDA loans really require zero down payment?
Yes — USDA Guaranteed loans allow 100% financing of the home’s appraised value. That makes them one of only two U.S. mortgage programs (the other being VA) that let an eligible buyer purchase a primary residence with no down payment. The 1% upfront guarantee fee can be rolled into the loan as well, meaning you can close with virtually no cash needed beyond standard closing costs (and many sellers will pay some or all of those on a USDA deal).
What are USDA income limits?
Household income — for everyone in the home, not just the borrowers — must be at or below 115% of the area median income (AMI) for the county. USDA publishes county-by-county income limits that get updated each year. Note that ‘income’ for USDA is adjusted, not gross: you can deduct certain amounts for dependents, child care, and disabilities. A family that looks ineligible on gross income often qualifies after adjustments. Check the USDA income eligibility lookup for your specific county before assuming you’re over.
How do I know if a property is USDA-eligible?
The property must sit in an area USDA classifies as rural. Surprisingly, this includes large parts of suburbs and small towns — not just farmland. USDA maintains an official property eligibility map at eligibility.sc.egov.usda.gov where you can type any address and get an immediate eligible/ineligible answer. Roughly 97% of U.S. land area qualifies, though only about 25–30% of the population lives in eligible zones, mostly concentrated in suburbs of mid-sized metros and rural towns.
What are the USDA fees and how do they compare to PMI or MIP?
USDA has two fees that replace traditional mortgage insurance. The 1% upfront guarantee fee is paid at closing (usually financed). The 0.35% annual fee is calculated on the outstanding balance, divided by 12, and added to each monthly payment. On a $250,000 loan that’s about $73 a month at the start, declining over time. Compared to FHA (1.75% upfront + 0.50–0.55% annual) and conventional PMI (typically 0.5–1.5% annual depending on credit), USDA fees are the lowest among low-down-payment options for borrowers who qualify.
Can I refinance a USDA loan?
Yes. USDA offers three refinance options: streamlined-assist (no appraisal, no credit re-check — the easiest path if your goal is just a lower rate), streamlined (limited documentation), and standard (full underwriting). All three keep you in the USDA program and re-finance into another USDA loan; you can also refinance out to conventional if you’ve built enough equity. Streamlined-assist is usually the fastest and cheapest if you qualify, and it’s available even if your home value has dropped since purchase.