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USDA Home Loan Qualification Calculator
FREEandCLEAR Calculator

Calculate the USDA Home Loan You Qualify For

Calculator developed by

Use our USDA Home Loan Qualification Calculator to determine what size USDA mortgage you qualify for based on several factors including your monthly gross income and debt expense as well as your down payment, interest rate and loan term.  Borrowers can use the USDA home loan program to buy a home located in a designated rural area with no down payment.
The USDA mortgage amount you can afford depends on your monthly gross income, or how much money you make before deductions such as taxes and social security. The more money you make, the more mortgage and home you can afford. The higher your monthly debt expense, however, the smaller the loan amount you qualify for. This is because the USDA home loan program uses a debt-to-income ratio that limits how much of your income you can spend on debt expenses including your mortgage and other monthly payments including for car and student loans and credit cards. Our calculator determines your estimated USDA home loan amount based on this debt-to-income ratio.
Your interest rate and mortgage length are also factors that affect what size USDA mortgage you can afford. The lower your rate and longer your mortgage, the more mortgage you qualify for. USDA mortgage rates tend to be lower than other loan program which means you can afford a larger loan. Additionally, loans with longer terms, such as a 30 year mortgage, have lower monthly payments which also improves mortgage affordability. Use our USDA Mortgage Qualification Calculator to evaluate how different mortgage rates and loan lengths affect how much mortgage you can afford.
The calculator also determines the one-time and monthly USDA mortgage insurance fees, which are also called guaranty fees. These are extra fees borrowers are required to pay at closing and on an ongoing basis with a USDA mortgage. The monthly USDA insurance fee is added to your mortgage payment, property tax and hazard insurance to calculate your monthly housing expense or the total cost of owning a home which can help you better manage your finances.
Our USDA Mortgage Qualification Calculator enables you to review an unlimited number of scenarios to understand the loan you can afford and determine if USDA Program meets your financing objectives. We also offer a version of this calculator that does not require personal information

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When you provide valid personal info we may connect you with lenders which enables you to compare mortgage proposals and find the mortgage that is right for you. Click here for a version of this calculator that does not require personal info
Outputs
You may be able to add the upfront USDA mortgage insurance fee to your loan for a higher mortgage amount
 
Estimated property purchase price you can afford based on the mortgage amount for which you qualify and your down payment
 
The size of your mortgage relative to the value of your property. If your mortgage size is $80,000 and the property purchase price is $100,000, the LTV ratio is 80%
 
 
 
Total monthly housing expense including your mortgage payment (principal and interest), property taxes, property insurance and USDA Mortgage Insurance Premium
Lender guidelines typically allow you to spend a maximum of 41% of your GROSS monthly income on your combined monthly housing expense and other monthly debt
 
The USDA Program requires the borrower to pay an up-front Mortgage Insurance Guarantee Fee. The up-front fee is 1.00% of the mortgage amount
 
The USDA Program requires the borrower to pay an ongoing Mortgage Insurance Guarantee Fee in addition to the monthly mortgage payment. The ongoing fee equals 0.35% of the mortgage amount
 
Please review our USDA Home Loan Program overview and borrower qualification guidelines and consult your local lender to confirm your ability to qualify for a USDA mortgage
 
Current FHA Mortgage Rates as of December 11, 2018
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Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details.
While we pride ourselves on the quality and breadth of the FREEandCLEAR mortgage calculators please note that they should be used for informational purposes only. Our calculators rely on assumptions by us and inputs and assumptions provided by you, which may be inaccurate. The outputs from our calculators are estimates only and should not be used as the sole basis for making any financial decisions. Always consult multiple financial professionals when determining the mortgage size and program that is appropriate for you.

What Borrowers Should Know About a USDA Home Loan

1

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.

2

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.

3

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. 

4

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.    

5

No Loan Limits But Income Limits Apply

Unlike other no or low down payment mortgage programs, the USDA home loan program does not use loan limits that put a cap on your mortgage amount.  Instead, the USDA program applies borrower income limits that put a cap on how much money you can make. In short, if your total household income is too high, you may be ineligible for the program.  The limit is based on the gross income for all members of the household that occupies the property being financed.  For example, if your aunt intends to live in the home with you then her income is included to determine if you qualify for a USDA mortgage, even if she is not on the mortgage or is not on the property title.  The income limit for the USDA home loan program is usually 115% of the median household income for the area where the property is located.   

More FREEandCLEAR Mortgage Resources

Mortgage Guides

How the USDA Home Loan Program Works

Review our in-depth overview of the USDA home loan program including eligibility guidelines, borrower qualification requirements and other key program information such as USDA guarantee fees and borrower income limits

Resources

Pros and Cons of a USDA Home Loan

Understand the posiitves and negatives of a USDA home loan to determine if it the right program for you

Programs

Comparison of No and Low Down Payment Mortgage Programs

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

Resources

Mortgage Rates

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

Mortgage Expert Insights

Mortgage Lender Directory

Use the FREEandCLEAR Lender Directory to find top-rated lenders that offer the USDA home loan program

Sources

USDA Home Loan Program Requirements: https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

USDA Home Loan Debt-to-Income Ratio: https://www.rd.usda.gov/files/3555-1chapter11.pdf

About the calculator developer

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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