USDA Loan Calculator

USDA loans require the property to be in a USDA-eligible rural area (verifiable via the USDA Property Eligibility map - many small towns and suburban fringes qualify) and the household to fall within income limits. For the Guaranteed program, household income must be at or below 115% of the area median income. Credit scores of 640+ qualify automatically; below that requires manual underwriting.

USDA charges an upfront guarantee fee of 1.0% of the loan (financed) plus an annual fee of 0.35% paid monthly. On a $250,000 loan, that's $2,500 upfront plus about $73/month. Compared to FHA's 1.75% + 0.55% structure, USDA is the cheapest insured option for eligible buyers - and like VA, requires no down payment.

Income limits vary by county and household size. As a baseline for the Guaranteed program in 2026, a 1–4 person household typically caps around $115,000–$125,000 of adjusted income in most areas, rising to roughly $150,000–$170,000 in higher-cost counties. The Direct program (subsidized) has much lower limits - typically $50,000–$80,000.

USDA uses Census data plus updates from the 2020 census; eligible areas generally have populations under 35,000. Many outer suburbs of mid-sized cities qualify - the rule of thumb is that anything outside a major metropolitan core is worth checking on the USDA eligibility map at eligibility.sc.egov.usda.gov.

No. The USDA program offers 100% financing of the purchase price, plus the 1% guarantee fee that gets added to the loan. It's one of the few homebuyer mortgage options that allows zero down payment with no penalty.

The Guaranteed loan (Section 502) is originated through approved lenders and is the most common; this calculator models that type. The Direct loan (also Section 502) is issued directly by the USDA and targets very-low- and low-income households, with rates subsidized based on income.

Yes. The USDA offers refinance programs for existing USDA loans, including a streamlined no-appraisal refinance option for borrowers who already hold a USDA loan and have a solid payment history.

No, unlike conventional loans with less than 20% down. Instead, USDA loans have their own fee structure: the 1% upfront guarantee fee and the 0.35% annual fee, which are cheaper than typical PMI.