USDA loan calculator

Loan breakdown

Down payment

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Base loan amount

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Total financed (base + upfront fee)

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Principal & interest

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Escrow (tax + insurance)

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Lifetime guarantee cost

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The annual fee is charged on the scheduled balance, so it shrinks a little every year rather than staying flat like FHA MIP on a fixed base.

Eligibility in brief

• Location: the property must sit in a USDA-eligible rural area. Coverage is wider than the word “rural” suggests and includes many small towns and outer suburbs.
• Income: household income is generally capped at 115% of the county area median, counting all adult household members.
• Occupancy: owner-occupied primary residences only — no investment or holiday properties.

Check an address and income limit on the USDA eligibility site

USDA versus the alternatives

Against FHA, USDA usually wins on monthly cost — 0.35% a year versus 0.55%, and no 3.5% down payment. Against VA it loses, because VA charges nothing monthly, but VA requires military eligibility. Compare directly on the FHA calculator and the VA calculator, or check what you can borrow on the affordability calculator.

Common questions

What fees does a USDA loan charge?

Two. A one-off upfront guarantee fee of 1% of the loan amount, which is normally financed into the balance, and an annual fee of 0.35% of the scheduled balance, collected in twelve monthly instalments. The annual fee runs for the life of the loan.

Can I really buy with no money down?

Yes — the USDA Single Family Housing Guaranteed Loan programme finances 100% of the appraised value, and the upfront guarantee fee can be financed on top of that. Closing costs still have to be paid or negotiated as seller credits.

Which properties qualify?

The home must be in an eligible rural area, which in practice covers a large share of the country including many small towns and outer suburbs. Check the specific address on the USDA eligibility map before assuming it qualifies.

Are there income limits?

Yes. Household income generally cannot exceed 115% of the area median income for the county, counting the income of all adult household members, not just the borrowers. Limits vary widely by county and household size.