Free USDA Loan Calculator

USDA Loan Calculator

Calculate your exact USDA rural housing payment — including the 1% upfront guarantee fee and 0.35% annual fee. Check income eligibility and compare to FHA at 3.5% down.

0%
Down payment required
USDA Rural Development
0.35%
Annual fee (vs FHA 0.55%)
USDA RD 3555-12

USDA Loan Calculator

USDA Loan Details

0% Down Payment — USDA loans require no down payment
Home Price / Purchase Price
$
Down Payment$0 (0%)
Upfront Guarantee Fee (1%)$2,800.00
Total USDA Loan$282,800.00
Interest Rate avg USDA: ~6.00%
%
Loan Term

Income Eligibility Check

Annual Household Income
$
Household Size
Likely income eligible — $85K is under the ~$111K limit for 3 persons

Optional — tax & insurance

Property Tax %/yr
%
Insurance /mo
$

Enter your loan details and click Calculate

USDA vs. FHA vs. VA vs. Conventional

USDA loans are often the cheapest option for eligible rural buyers — but they have strict location and income requirements. Here's how they stack up:

FactorUSDAVAFHAConventional
Down payment0%0%3.5%3–20%
Upfront fee1% (rolled in)1.4–3.6%1.75% UFMIPNone
Annual fee0.35% decliningNone0.55% lifePMI if <20%
Income limit~$110,650NoneNoneNone
Location restrictionRural areas onlyAnywhereAnywhereAnywhere
EligibilityLow-mod incomeVeterans onlyAnyoneAnyone
Avg rate (Mar 2026)~6.00%~5.75%~6.01%~6.41%

Sources: USDA RD / VA.gov / HUD FHA. Rates as of March 2026.

USDA Income Limits 2024

USDA limits apply to total household income — all adults living in the home, including non-borrowers. Limits vary by county and household size:

Household SizeStandard LimitHigh-Cost Areas
1–4 persons$110,650$148,200+
5–8 persons$146,050$195,600+

Limits vary significantly by county. Always verify your exact limit at the USDA Income Eligibility Tool. Source: USDA RD Handbook.

How USDA Guarantee Fees Work

Unlike FHA MIP which is fixed, the USDA annual fee is recalculated each year on the outstanding loan balance. This means it decreases every year as you pay down the principal:

$250,000 USDA Loan — Annual Fee Over Time
Year 1$252,500 balance$73.85/mo
Year 5$238,400 balance$69.58/mo
Year 10$219,100 balance$63.98/mo
Year 20$170,300 balance$49.67/mo
Year 29$28,600 balance$8.34/mo

How to Check USDA Property Eligibility

"Rural" doesn't mean remote farmland — many suburban communities qualify. Generally, areas outside cities with populations above 35,000 are eligible. To check a specific address:

  • Visit the USDA eligibility map at eligibility.sc.egov.usda.gov — enter any address to see if it qualifies instantly.
  • Over 97% of U.S. land area is USDA-eligible, covering approximately 109 million people.
  • Many commuter suburbs qualify — areas within 30–60 miles of major cities often qualify as rural.
  • Check income limits for your county — use the USDA's income eligibility tool with your actual county for precise limits.
  • Work with a USDA-approved lender — not all lenders process USDA loans; find approved lenders at USDA RD.
FAQ

USDA Loan — Common Questions

What are USDA loan income limits for 2024?
USDA income limits vary by county and household size. Standard 2024 limits: 1–4 person household = $110,650, 5–8 person = $146,050. High-cost counties can be significantly higher — up to $148,200+ for small households in California, New York, and Hawaii. Important: USDA counts ALL household income, including that of non-borrowing residents. Verify your exact county limit at the USDA eligibility portal (eligibility.sc.egov.usda.gov).
What is the USDA guarantee fee and how does it compare to FHA MIP?
USDA charges two fees: (1) Upfront guarantee fee = 1% of loan (vs FHA's 1.75%). (2) Annual fee = 0.35% of outstanding balance (vs FHA's 0.55%). Both fees are significantly lower than FHA MIP. On a $250,000 loan: USDA upfront = $2,500 vs FHA $4,375. USDA annual = $72.92/mo vs FHA $114.58/mo. Additionally, unlike FHA MIP, the USDA annual fee declines each year as your balance decreases.
What properties qualify for a USDA loan?
The property must be in a USDA-designated rural or suburban area (verified at USDA's eligibility tool) and be the borrower's primary residence. Eligible: single-family homes, condos (in approved projects), new construction, and manufactured homes with permanent foundation. Ineligible: investment properties, vacation homes, income-producing farms, and homes in urban areas with populations above 35,000.
How long does USDA loan approval take?
USDA loans require an extra step — after your lender approves you, the file goes to the USDA Rural Development office for review and commitment. This adds 1–3 weeks. Total timeline is typically 30–60 days, similar to FHA. Some lenders have delegated underwriting authority which can shorten this. Start early if you have a contract deadline.
Can I refinance a USDA loan?
Yes. Options include: USDA Streamlined Refinance (no appraisal, simplified documentation), USDA Streamlined-Assist Refinance (must reduce payment by $50+/month), and standard USDA refinance. You must have made on-time payments for 12 months, the property must still be in an eligible area, and income must still meet limits. You can also refinance out to a conventional loan once you have sufficient equity.
Is a USDA loan better than FHA?
For eligible borrowers in rural areas, USDA is almost always better than FHA: 0% down vs 3.5%, lower fees (1% upfront vs 1.75%, 0.35% annual vs 0.55%), and the annual fee declines with the balance. The major limitation is geographic and income restrictions — FHA works anywhere and has no income cap. If you're buying in a rural area and meet income limits, USDA wins on cost.

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