USDA Mortgage Calculator
Estimate your payment on a USDA loan for eligible rural properties, with zero down payment.
Your Details
How It Works
- Enter the home price for an eligible rural property.
- Enter the interest rate and term.
- Press Calculate to see your payment including the guarantee fee.
Formula Used
Uses typical USDA fees: ~1% upfront, ~0.35% annual guarantee fee.
Good to Know
- • USDA loans typically require no down payment for eligible buyers.
- • Available only in USDA-designated rural and some suburban areas.
Important Notes
- • Eligibility depends on property location and household income limits.
- • Fee rates shown are typical estimates and may change.
Who USDA Loans Are Designed For
USDA loans are backed by the U.S. Department of Agriculture to support homeownership in eligible rural and some suburban areas, and are one of the few loan programs offering genuinely zero-down financing to qualifying buyers. Eligibility depends both on the property's location falling within a USDA-designated area and the household's income falling under program limits, which vary by location and household size.
Guarantee Fees: The USDA Equivalent of Mortgage Insurance
In place of the down payment that would otherwise offset lender risk, USDA loans charge a guarantee fee — both an upfront charge (often financed into the loan) and a smaller ongoing annual fee, similar in spirit to FHA's MIP but generally at lower rates. This fee structure is part of what makes USDA loans an appealing zero-down option for eligible rural buyers.
Words You'll Run Into
- Guarantee fee — USDA's equivalent of mortgage insurance, both upfront and ongoing.
- Eligible rural area — a USDA-designated geographic zone where the property must be located.
Here's How It Works: Zero-Down Rural Financing
On a $260,000 eligible home with 0% down at 6.25% over 30 years:
Total loan amount = $262,600
Monthly P&I ≈ $1,617
Monthly guarantee fee (0.35% annual) ≈ $77
The combined $77/month guarantee fee is notably lower than FHA's comparable MIP charge on a similar loan amount, making USDA loans one of the more cost-effective zero-down options for buyers in eligible areas.
USDA vs. FHA Guarantee Fee Comparison
| Program | Upfront Fee | Annual Fee |
|---|---|---|
| USDA | 1.0% | 0.35% |
| FHA | 1.75% | 0.55% |
Slip-Ups to Watch For With USDA Loans
- Not checking property eligibility first — not all "rural-looking" areas qualify.
- Overlooking household income limits — USDA loans cap eligible income by area.