USDA Loan Calculator

USDA loans help low- and moderate-income buyers afford homes in qualifying areas, which are not limited to rural regions. One major feature of USDA loans is that they have no down payment requirements.

Our USDA mortgage calculator can help you run the numbers to see if the home you’ve got your eye on fits your monthly budget.

Understanding our calculator

Let’s break down some of these inputs and how they’ll affect your monthly loan payment.

• How much you’ll spend on your home: Limits for USDA loans vary by county. You can find the limit in your area using this chart. 

• Your down payment: USDA loans do not require a down payment; however, you can choose to put cash down to lower your monthly payments and have a smaller mortgage. 

• Interest rate: Lenders set their own interest rates for USDA guaranteed loans, which are typically lower than conventional mortgage rates. USDA direct loans (which are issued directly by the Department of Agriculture to low-income borrowers) have a fixed rate set by the government. As of July 1, 2024, this rate was set at 4.875%. 

• Total monthly cost: In addition to principal and interest, our calculator includes estimates for insurance and taxes in your monthly cost projection. We also add the required monthly fee of 0.35% of the cost of your total loan.

What is a USDA loan?

A USDA loan is a mortgage that is backed by the U.S. Department of Agriculture (USDA). There are two types: The most common one is the USDA guaranteed loan, which you receive from a bank or other mortgage lender. With a less-common USDA direct loan, you borrow directly from the Department of Agriculture. USDA direct loans are reserved for qualified first-time homebuyers whose earnings are no more than 80% of their area’s median income.

USDA loans have no down payment requirements, and they typically come with a lower interest rate than you’ll find among conventional mortgages.

» MORE: Best USDA lenders

Qualifications for a USDA guaranteed loan

To qualify for a USDA guaranteed loan, you’ll need to meet the following requirements.

• You must live in an eligible county. 

• Your earnings cannot exceed 115% of your county’s median income. 

• The home you’re purchasing must be your primary residence. 

• It’s preferred that you have a credit score of at least 640. If your score is below 640, the lender may request additional documentation, such as rent or mortgage verification or a letter explaining your credit history.  

You can use this chart from the USDA to determine whether your home is in an eligible county and whether you meet local income limits.