USDA Loan Calculator
Calculate your USDA rural loan payment including the 1% guarantee fee and 0.35% annual fee — with no down payment required.
USDA Loans: The Hidden Gem of Rural Home Buying
USDA Direct and Guaranteed loans offer 100% financing for eligible rural and suburban properties, making them one of the few remaining 0% down loan programs. Combined with competitive rates and no private mortgage insurance, USDA loans often produce the lowest monthly payment of any loan type — lower than FHA with 3.5% down and lower than VA in most cases.
The USDA Guaranteed Loan program (the most common) is processed through approved lenders with USDA guarantee backing. Rates are set by the market, similar to conventional loans. Income limits (115% of area median income) and property location requirements are the main constraints.
USDA Annual Fee: The Catch
Unlike conventional PMI which drops at 80% LTV, the USDA annual fee of 0.35% continues for the life of the loan. On a $280,000 loan, that's $980/year ($82/month) forever. However, this is still lower than FHA's annual MIP of 0.55%, and USDA requires no down payment vs FHA's 3.5%.