USDA Loan Calculator
Our USDA Loan Calculator shows you the monthly payment, upfront and ongoing mortgage insurance fees, total monthly housing expense and what price home you can afford with a no down payment USDA home loan.
Your monthly loan payment is calculated using your loan amount, interest rate and mortgage length. The lower your mortgage amount and interest rate, the lower your payment. Additionally, the longer your mortgage, the lower your payment. You can change these inputs in the calculator to understand how they impact your payment.
To understand the total monthly cost of buying a home with a USDA home loan, the calculator determines your estimated total monthly housing expense including your loan payment, property tax, hazard insurance and monthly USDA mortgage insurance fees, which are also called guarantee fees. The higher your mortgage amount and property purchase price, the higher your total monthly housing expense.
The calculator also determines your loan-to-value (LTV) ratio, which is your loan amount divided by the value of the property being financed. Because the USDA home loan program does not require a down payment -- which means your mortgage amount can cover the entire property purchase price -- the LTV ratio for a USDA loan can be 100% or even higher if you include the upfront USDA mortgage insurance fee you are required to pay. The calculator shows you how your LTV ratio changes if you choose to make a down payment, even though you are not required to.
The estimated property purchase price with a USDA home loan is based on your mortgage amount and if you decide to make a down payment. The higher your loan amount and down payment, the higher the price home you can buy with a USDA mortgage.
Use our USDA Loan Calculator to review numerous options for mortgage amount, loan length and interest rate to find the USDA home loan and monthly payment that match your budget and financial goals. We also offer a version of this calculator that does not require personal information.
Monthly Housing Payments
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Top Benefits of a USDA Mortgage
The Program Is Available More Places Than You Think
Although the USDA Home Loan Program is targeted at homebuyers in rural areas and smaller communities, the program is more widely available than you would think given this description. To be eligible for a USDA mortgage, the property being financed must be located in a USDA-designated rural area but approximately 95% of land in the United States with a population of over 100 million potential home buyers is categorized as rural according to USDA program guidelines. Odds are if you want to buy a home in a major metropolitan area or city the property is not eligible for a USDA mortgage but if you are looking to buy in a suburb or more rural area then the program may work for you. It is important to highlight that program eligibility is based on the location of the property being mortgages and not where you currently live. Because the program covers more area than you would expect, you should always check the USDA property eligibility website to determine if your target property qualifies. So do not let the term rural development prevent you from looking into a USDA mortgage as more properties are eligible than you would expect.
Buy a Home with Zero Money Down
For many borrowers the prospect of making a 20% down payment to buy a home is an insurmountable challenge, especially if you are living paycheck-to-paycheck. You may be able to afford a monthly mortgage payment based on how much rent you pay but you may not have much money leftover to save for a down payment. This is why the opportunity to buy a home with zero down payment is one of the most important advantages of a USDA loan. Even if you have some funds save for a down payment, this compelling program feature enables you to use that money to afford a nicer home or to pay for all or part of your mortgage closing costs including the upfront USDA guarantee fee. Simply put, by not requiring a down payment, the USDA Home Loan Program enables more people to buy homes.
Attractive Mortgage Rates
USDA mortgage rates are usually lower than the rates for many other no or low down payment programs. USDA loan interest rates are lower because the program is backed by the federal government and because program participants pay mortgage insurance mortgage guarantee fees. The government-sponsorship and insurance paid for by the borrower ensure that lenders recover their outstanding principal balance if the borrowers defaults on the loan and cannot repay the mortgage. We should highlight that USDA guarantee fees pay for insurance that protects the lender even though the borrower pays for them. The positive for borrowers is that lower USDA interest rates mean your monthly loan payment is lower plus the total interest expense you pay over the course of the loan is significantly reduced. While lower rates certainly benefit borrowers, we still recommend that you compare several lenders and select the USDA loan with the most attractive terms.
No Mortgage Limits
The USDA Program does not apply mortgage limits that cap your loan amount. Most conventional low down payment programs and government-backed programs including VA and FHA loans impose limits on what size mortgage you are eligible for. Although the USDA Mortgage Program uses applicant household income limits, not applying mortgage limits enables more people to qualify for the program and possibly obtain larger loans than they could with other programs.
Less Expensive Mortgage Insurance than Some Other Programs
One of negatives of a USDA loan is that you are required to pay an upfront and ongoing monthly mortgage insurance fee. These insurance fees are also referred to as guarantee fees. The one-time USDA guarantee fee is 1.0% of the loan amount and the ongoing fee is .35% of the loan amount. The good news for applicants is that mortgage insurance for the USDA Program is lower than for other programs including the FHA program and the monthly fee is usually lower than private mortgage insurance (PMI) for a conventional loan. The lower your mortgage insurance, the lower your closing costs and monthly housing payment, which makes the USDA Program more affordable compared to other programs. You can use our USDA Loan Calculator to determine the guarantee fees based on your mortgage amount.
The USDA Home Loan Program is more flexible than other no or low down payment mortgage programs in certain areas. For example, you can use a USDA loan to purchase land and build a home. Most similar mortgage programs cannot be used to buy vacant land or for construction loans. Other programs including the FHA and VA programs can only be used to purchase properties that are already built -- be it a new or existing home. Please note that if you use a USDA mortgage to build a home, you may be required to make a down payment to qualify. The greater flexibility of the program may appeal to people in rural areas who have identified a plot of land where they want to build a home. The USDA Home Loan Program offers them a low down payment option to finance both the land purchase and home construction.
The Program Can Be Used for Different Types of Homes
The USDA Home Loan program can be used to buy various types of properties including houses, condominiums, co-ops, land and even manufactured homes. As long as the manufactured home is attached to a permanent foundation it is eligible for the program. More types of properties are eligible for a USDA home loan as compared to other no or low down payment loans which makes the program applicable to more borrowers.
More FREEandCLEAR Mortgage Resources
Learn everything there is to know about the USDA Mortgage Program including applicant income limits, eligibility requirements and property location restrictions. Understand if you are eligible for a USDA mortgage based on your financial profile and where the home you want to buy is located.
Calculate what size USDA home loan you qualify for based on your monthly gross income, debt expenses, current interest rates and other inputs. Determine how much home you can afford to buy with the USDA Home Loan Program.
Use our lender tables to review interest rates and fees for leading lenders in your area. Shopping at least five lenders and comparing multiple mortgage quotes enables you to find the loan with the best terms including the lowest mortgage rate and closing costs.
Compare the USDA Home Loan Program to over 20 other no and low down payment programs including government-backed and conventional options as well as custom programs offered by specific lenders. Understand your financing options and select the low down payment program that best meets your personal and financial goals. This resource is especially helpful if the home you want to buy is not located in a USDA-designated rural area.