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USDA Mortgage Calculator

Calculate your USDA loan payment including the guarantee fee — a zero-down option for eligible rural and suburban properties.

Part of a topic cluster
This page is part of our Complete Mortgage Guide 2026.
Base loan amount
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Upfront guarantee fee (1%)
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Total financed amount
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Principal & interest
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Monthly annual fee (0.35%)
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Total monthly payment
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How USDA loan fees work

USDA loans charge an upfront guarantee fee of 1% of the loan amount (typically financed into the loan) plus an annual fee of 0.35% of the outstanding balance, charged monthly, similar in structure to FHA MIP but at lower rates.

Total financed amount = Base loan + (Base loan × 1% upfront fee)
The 0.35% annual fee is recalculated each year against the declining balance, so the monthly cost slowly decreases over the loan term.

Who qualifies for a USDA loan

USDA loans require the property to be in an eligible rural or suburban area (more locations qualify than most people expect — many suburbs of mid-sized cities are included) and household income to fall within local limits, typically 115% of the area median income.

Why USDA is often overlooked

With 0% down and lower fees than FHA, USDA loans are frequently the cheapest available option for eligible buyers — but the eligibility map and income limits keep it underused. Check the USDA eligibility map before assuming a property does not qualify; many surprisingly suburban areas are included.

Related tools

Compare against other zero-down options in the VA Mortgage Calculator, or check FHA in the FHA Mortgage Calculator.

Frequently asked questions

Do USDA loans require a down payment?
No. USDA loans allow 0% down for eligible buyers in qualifying rural and suburban areas — similar to VA loans but available to non-military borrowers.
What is the USDA guarantee fee?
An upfront fee of 1% of the loan amount, typically financed into the loan, plus an annual fee of 0.35% of the outstanding balance charged monthly — both lower than typical FHA MIP rates.
What areas qualify for USDA loans?
Properties must be in USDA-designated rural or suburban eligibility zones. Despite the name, many areas outside major metro centers qualify, including numerous suburbs. Check the official USDA eligibility map for a specific address.
Are there income limits for USDA loans?
Yes, household income generally cannot exceed 115% of the area median income, though this varies by location and household size.
USDA vs FHA — which is cheaper?
USDA is typically cheaper when you qualify, thanks to lower guarantee fees than FHA MIP and no down payment requirement. FHA is more broadly available regardless of location or income, making it the fallback when USDA eligibility does not apply.
Related tools
→ VA Mortgage Calculator→ FHA Mortgage Calculator→ Home Affordability Calculator→ Mortgage Calculator