Calculate the USDA Home Loan You Qualify For and Connect with Top Lenders
Use our USDA Home Loan Qualification Calculator to determine what size USDA mortgage you qualify for as well as the upfront and ongoing USDA mortgage insurance fees, based on your monthly gross income and debt expense. This calculator also shows you how much home you can afford with a USDA home loan as well as your loan-to-value ratio. Use our USDA Home Loan Calculator to understand your total monthly housing expense including your USDA loan payment, hazard insurance, property tax and USDA mortgage insurance. When you submit your information we connect you with up to four leading lenders so that you can confirm your mortgage terms and compare multiple proposals to find the mortgage that is right for you. We also offer a version of this calcualtor that does not require personal information
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What Borrowers Should Know About a USDA Home Loan
No Down Payment Required
The USDA home loan program enables borrowers in rural communities to buy a home with no down payment. Saving money to pay for a down payment is one of the biggest obstacles to buying a home so enabling borrowers to qualify for a mortgage with no down payment is a major benefit. Although borrowers are required to pay an extra upfront and ongoing monthly USDA mortgage insurance (guarantee fee), the USDA home loan program makes home ownership more affordable and accessible to borrowers in rural areas.
Low Interest Rate
The interest rate for USDA mortgages is lower than the interest rate for many other no or low down payment home loan programs. USDA home loans have lower interest rates because the mortgages are insured by the U.S. government and because program participants pay mortgage insurance, which protects lenders in the event of default. Paying a lower interest rate reduces your mortgage payment and total monthly housing expense and saves you thousands of dollars in total interest expense over the term of your mortgage. Use our USDA Home Loan Qualification Calculator to determine how a lower mortgage rate positively affects your loan payment.
Borrower Qualification Requirements
USDA home loan program borrower mortgage qualification guidelines are more conservative than other no or low down payment mortgage programs such as the FHA home loan program. The USDA home loan program requires a minimum credit score of 620 as compared to 580 for the FHA program. Additionally, the USDA home loan program uses a borrower debt-to-income ratio of approximately 41% to determine what size loan you qualify for as compared to a debt-to-income ratio of 43% or higher for the FHA mortgage program. Our USDA Home Loan Calculator uses this debt-to-income ratio to determine your loan amount. Using a lower debt-to-income ratio means that borrowers qualify for a smaller mortgage amount.
Property Eligibility Guidelines
The home being financed with a USDA loan must meet certain eligibility guidelines in terms of location and property type. The home must be located in a USDA-designated rural area. 95% of the U.S. representing over 100 million people is designated as a USDA rural area. Additionally, the property must be a single-family residence such as a home, condominium, townhouse or modular home. The property must also be in good condition according to the appraisal report.
More FREEandCLEAR Mortgage Resources
Review our in-depth overview of the USDA home loan program including eligibility guidelines, borrower qualification requirements and other key program information such as FHA guarantee fees and borrower income limits
Understand the posiitves and negatives of a USDA home loan to determine if it the right program for you
Review and compare multiple government-backed and conventional low or no down payment mortgage programs to understand borrower benefits, program eligibility requirements and qualification guidelines
Compare mortgage rates and costs from top lenders near you. Comparing proposals from multiple lenders is the best way to save money on your mortgage