USDA Loan Calculator
Calculate your USDA loan payment with no down payment required. Check if you qualify based on income.
Loan Details
USDA allows 0% down in eligible areas
Income Eligibility
Income limit for 4 person household: $103,500
Understanding USDA Loans
USDA Rural Development loans help low-to-moderate income families purchase homes in rural areas. They offer 100% financing with competitive interest rates, making homeownership accessible without a large upfront investment.
USDA Loan Benefits
- No Down Payment: 100% financing available — one of only a few programs that lets you buy with nothing down
- Low Rates: Competitive interest rates, often 0.25-0.5% lower than conventional loans because of the government guarantee
- Flexible Credit: More lenient credit requirements than conventional loans — 640+ FICO typically required
- Low Mortgage Insurance: Guarantee fee is 0.5% annually — lower than FHA's 0.85% MIP and conventional PMI
Eligibility Requirements
To qualify for a USDA loan, you must meet income, location, and credit requirements.
Income Limits
- Based on household size — higher limits for larger families
- Must not exceed 115% of area median income (AMI)
- Adjusted gross income is used for qualification
- Check your county's specific limits at rd.usda.gov
Property Requirements
- Must be in eligible rural area as defined by USDA
- Primary residence only — no vacation homes or investment properties
- Maximum loan amount: varies by county ($400,000+ in many areas)
- Home must meet USDA property standards for safety and livability
How to Use This Calculator
- Enter the home price you're considering
- Set your interest rate (USDA rates are often 0.25-0.5% below conventional)
- Choose your loan term (15 or 30 years)
- Review your estimated monthly payment, including the USDA guarantee fee
The calculator automatically includes the 0.5% annual USDA guarantee fee (UF) and the 1% upfront guarantee fee that can be rolled into the loan. These replace private mortgage insurance, making USDA loans more affordable than FHA for eligible borrowers.
USDA vs Other Low-Down-Payment Options
- USDA vs FHA: USDA has no down payment and lower MI (0.5% vs 0.85% annual). FHA requires 3.5% down and MIP lasts the life of the loan with under 10% down.
- USDA vs VA: Both offer 0% down, but VA has no mortgage insurance at all and no income limits. USDA has income caps and a guarantee fee. If you're eligible for both, VA is usually better.
- USDA vs Conventional: Conventional requires 3-20% down and PMI below 20%. USDA is 0% down with lower MI, but is limited to rural areas and has income limits.
Frequently Asked Questions
What is a USDA loan?
A USDA loan is a mortgage loan guaranteed by the U.S. Department of Agriculture. It is designed to help low-to-moderate income households in rural areas achieve homeownership with no down payment required.
What are USDA loan income limits?
USDA income limits vary by household size and location. For most areas, the limit for a 1-4 person household is around $103,500. Higher limits apply in certain high-cost areas.
What is the USDA guarantee fee?
The USDA guarantee fee is currently 0.5% of the loan amount annually. This fee helps keep the program running and can be rolled into the loan. There is also a 1% upfront fee that can also be financed.