USDA loans offer a unique opportunity for homebuyers in rural areas to achieve homeownership with a $0 down payment. Use our USDA mortgage calculator below to determine your potential purchasing power and estimate monthly payments. It includes the specific characteristics of a USDA loan, such as upfront and annual mortgage insurance fees, providing a more accurate representation of your costs.

Our user-friendly USDA mortgage calculator allows you to adjust figures and instantly update the estimate. To obtain an accurate estimate, customize the fields to match your desired borrowing terms. Here’s a breakdown of how each field affects the USDA mortgage calculator:

Loan Amount:

Enter the total loan amount you plan to take out to purchase the home.

Estimated Rate:

The displayed USDA loan rate is a general estimate for educational purposes only. Rates fluctuate daily and depend on various factors. To obtain precise figures for your situation, consult a home loan specialist or learn more about USDA loan rates here.

Term of Loan:

Choose between a 15-year or 30-year term. Note that a 15-year term may affect your mortgage rate, as USDA loans currently do not offer hybrid or adjustable-rate mortgages (ARMs).

Property Taxes

By default, the calculator assumes property taxes to be 1.2 percent of the purchase price. However, actual property tax rates vary by location. To obtain an exact figure, consult your local assessor’s website or tax office.

Homeowner’s Insurance

The USDA mortgage calculator assumes homeowner’s insurance to be 0.35 percent of the home’s value, although this may vary depending on your insurer. Contact your insurance agent for an accurate quote.

Estimate Your Credit

The USDA does not impose a minimum credit score requirement, but most lenders do. Typically, a 640 credit score is necessary to utilize the USDA’s guaranteed underwriting system (GUS). The USDA mortgage calculator adjusts rates based on the selected credit range, providing an estimate for educational purposes.

The USDA loan program, similar to the VA and FHA programs, is offered by the United States Department of Agriculture (USDA). It enables eligible homebuyers in rural and suburban areas to finance a home without a down payment. However, USDA loans have unique eligibility requirements based on location and income. Learn more about USDA loans or check the eligibility requirements here.

While the USDA mortgagge calculator defaults to $0 down payment, the decision to make a down payment depends on your financial situation. While not mandatory, many borrowers take advantage of this benefit.

USDA loans include upfront guarantee and annual mortgage insurance fees. The guarantee fee is 1 percent of the purchase price, less any down payment, and can be rolled into the loan. Additionally, the annual mortgage insurance fee is 0.35% of the loan amount.

Note that closing costs, which vary by location, lender, loan type, and other factors, are not included in the USDA loan calculator. Typically, closing costs range between 2 and 6 percent of the loan amount and fall into loan-related and non-loan related categories.

After estimating your payments using the USDA mortgage calculator, reach out to a USDA-approved lender to determine your eligibility. They will evaluate your purchase location and financial situation, helping you navigate any potential obstacles. To access other homebuying calculators or to begin your USDA loan journey click here.