USDA Loan Calculator
Calculate USDA Rural Development home loan payments, guarantee fees, and eligibility. USDA loans offer 100% financing for eligible rural and suburban homebuyers with no down payment required.
USDA Loan Summary
USDA Guarantee Fee
Affordability Analysis
USDA Loan Benefits and Requirements
Key Benefits
- 100% Financing: No down payment required
- No PMI: Private mortgage insurance not required
- Competitive Rates: Similar to conventional loans
- Rural Focus: Designed for rural and suburban areas
- Flexible Credit: More lenient than conventional loans
- Refinance Option: Can refinance existing mortgages
Guarantee Fee Structure
- Upfront fee: 1% of loan amount
- Annual fee: 0.35% of remaining balance
- Fees can be financed into the loan
- Lower fees than FHA loans
- Guarantee protects lenders
Eligibility Requirements
- Location: Property must be in eligible rural area
- Income Limits: Vary by location and household size
- Credit Score: Minimum 640 typically required
- Primary Residence: Must be owner-occupied
- Property Standards: Must meet USDA property requirements
- Debt-to-Income: Maximum 43% front-end ratio
Rural Area Definition
- Population under 50,000
- Not adjacent to urban areas
- Some suburban areas qualify
- Check USDA eligibility map
- Requirements vary by state
Understanding USDA Loans
USDA loans, officially known as Rural Development loans, are designed to help low-to-moderate income families purchase homes in rural and suburban areas. These government-backed loans offer 100% financing with no down payment required.
USDA Loan Basics
USDA loans are guaranteed by the U.S. Department of Agriculture to encourage development in rural areas. The program helps make homeownership more accessible by eliminating the need for a down payment and offering competitive interest rates.
Guarantee Fee
Unlike FHA loans, USDA loans have both an upfront guarantee fee and an annual fee. The upfront fee is 1% of the loan amount, and the annual fee is 0.35% of the remaining balance. These fees help fund the program and protect lenders.
Eligibility Areas
USDA loans are available in eligible rural areas, which include towns with populations under 50,000 that are not adjacent to urban areas. Some suburban areas also qualify. Use the USDA's eligibility map to check if your location qualifies.
Income and Credit Requirements
USDA loans have income limits that vary by location and household size. Credit score requirements are generally more lenient than conventional loans, with a minimum score of around 640 typically required. Debt-to-income ratios cannot exceed 43%.
Property Requirements
Properties must be located in eligible areas and meet USDA property standards. This includes proper plumbing, heating, and electrical systems. The home must be the borrower's primary residence.
Tip: USDA loans are an excellent option for rural homebuyers who qualify. The no-down-payment feature makes homeownership accessible, but be sure to check income limits and location eligibility. Work with a USDA-approved lender for the best experience.