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USDA Loan Calculator
Our USDA mortgage calculator helps you estimate the costs of your USDA loan, including your mortgage insurance premium.
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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Taylor Getler is a home and mortgages writer for NerdWallet. Her work has been featured in outlets such as MarketWatch, Yahoo Finance, MSN and Nasdaq. Taylor is enthusiastic about financial literacy and helping consumers make smart, informed choices with their money.
Michelle Blackford spent 30 years working in the mortgage and banking industries, starting her career as a part-time bank teller and working her way up to becoming a mortgage loan processor and underwriter. She has worked with conventional and government-backed mortgages. Michelle currently works in quality assurance for Innovation Refunds, a company that provides tax assistance to small businesses.
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Johanna Arnone helps lead coverage of homeownership and mortgages at NerdWallet. She has more than 15 years' experience in editorial roles, including six years at the helm of Muse, an award-winning science and tech magazine for young readers. She holds a Bachelor of Arts in English literature from Canada's McGill University and a Master of Fine Arts in writing for children and young adults.
Practice making complicated stories easier to understand comes in handy every day as she works to simplify the dizzying steps of buying or selling a home and managing a mortgage. Johanna has also completed coursework in Boston University’s Financial Planning Certificate program. She is based in New Hampshire.
Managing Editor
USDA loans help low- and moderate-income buyers afford homes in qualifying areas, which are not limited to rural regions. One major feature of USDA loans is that they have no down payment requirements.
Our USDA mortgage calculator can help you run the numbers to see if the home you’ve got your eye on fits your monthly budget.
Understanding our calculator
Let’s break down some of these inputs and how they’ll affect your monthly loan payment.
How much you’ll spend on your home: Limits for USDA loans vary by county. You can find the limit in your area using this chart.
Your down payment: USDA loans do not require a down payment; however, you can choose to put cash down to lower your monthly payments and have a smaller mortgage.
Interest rate: Lenders set their own interest rates for USDA guaranteed loans, which are typically lower than conventional mortgage rates. USDA direct loans (which are issued directly by the Department of Agriculture to low-income borrowers) have a fixed rate set by the government. As of July 1, 2024, this rate was set at 4.875%.
Total monthly cost: In addition to principal and interest, our calculator includes estimates for insurance and taxes in your monthly cost projection. We also add the required monthly fee of 0.35% of the cost of your total loan.
What is a USDA loan?
A USDA loan is a mortgage that is backed by the U.S. Department of Agriculture (USDA). There are two types: The most common one is the USDA guaranteed loan, which you receive from a bank or other mortgage lender. With a less-common USDA direct loan, you borrow directly from the Department of Agriculture. USDA direct loans are reserved for qualified first-time homebuyers whose earnings are no more than 80% of their area’s median income.
USDA loans have no down payment requirements, and they typically come with a lower interest rate than you’ll find among conventional mortgages.
To qualify for a USDA guaranteed loan, you’ll need to meet the following requirements.
You must live in an eligible county.
Your earnings cannot exceed 115% of your county’s median income.
The home you’re purchasing must be your primary residence.
It’s preferred that you have a credit score of at least 640. If your score is below 640, the lender may request additional documentation, such as rent or mortgage verification or a letter explaining your credit history.
You can use this chart from the USDA to determine whether your home is in an eligible county and whether you meet local income limits.
Frequently asked questions
What is the lowest income for a USDA loan?
Low-income borrowers may be a good fit for a USDA direct loan. This chart shows income limits by county and number of people in the household. There is no stated minimum income; however, the USDA does stipulate that borrowers must “demonstrate a willingness and ability to repay the debt.”
What is the debt-to-income ratio for a USDA loan?
Housing costs including the mortgage principal, interest, taxes, homeowners insurance, annual fee and miscellaneous obligations (such as HOA fees) cannot exceed 29% of the buyer’s income. The buyer’s total debt including housing costs cannot exceed 41% of their income.
Enter an estimated interest rate. Unsure? Check current VA mortgage rates to see what lenders are offering.
Choose a loan term of 15 or 30 years. You'll pay less interest over the life of the loan with a 15-year term. Your monthly payment will be lower with a 30-year term because the repayment of the loan is stretched over a longer period.
Select whether this is your first VA mortgage. Your answer will affect the amount of your VA funding fee, a one-time charge most borrowers must pay.
Check the results. The "total monthly cost" estimates your monthly VA mortgage payment, including estimated costs for property taxes and home insurance. The "total cost" is how much you'll pay over the life of the loan, including the VA funding fee.
For more detail, select the "Monthly" or "Total" box under "Breakdown of costs." Some VA borrowers roll their funding fee into the total loan amount. If that’s your plan, take the funding fee amount, found under the "Total cost breakdown," and add it to the amount you expect to spend on a home under "Mortgage details." That will adjust your monthly payment to include the financed VA funding fee.
Income is tallied from all members of the household (everyone who will live in the home), with exclusions including live-in aids and foster dependents. The USDA won’t consider earned income from household members under the age of 18, earned income exceeding $480 from full-time students (unless the student is the applicant or their spouse) and temporary income (such as a gift).
What is the lowest income for a USDA loan?
Low-income borrowers may be a good fit for a USDA direct loan.
shows income limits by county and number of people in the household. There is no stated minimum income; however, the USDA does stipulate that borrowers must “demonstrate a willingness and ability to repay the debt.”
What is the debt-to-income ratio for a USDA loan?
Housing costs including the mortgage principal, interest, taxes, homeowners insurance, annual fee and miscellaneous obligations (such as HOA fees) cannot exceed 29% of the buyer’s income. The buyer’s total debt including housing costs cannot exceed 41% of their income.
Enter an estimated interest rate. Unsure? Check current
Choose a loan term of 15 or 30 years. You'll pay less interest over the life of the loan with a 15-year term. Your monthly payment will be lower with a
Check the results. The "total monthly cost" estimates your monthly VA mortgage payment, including estimated costs for property taxes and home insurance. The "total cost" is how much you'll pay over the life of the loan, including the VA funding fee.
For more detail, select the "Monthly" or "Total" box under "Breakdown of costs." Some VA borrowers roll their funding fee into the total loan amount. If that’s your plan, take the funding fee amount, found under the "Total cost breakdown," and add it to the amount you expect to spend on a home under "Mortgage details." That will adjust your monthly payment to include the financed VA funding fee.
Income is tallied from all members of the household (everyone who will live in the home), with exclusions including live-in aids and foster dependents. The USDA won’t consider earned income from household members under the age of 18, earned income exceeding $480 from full-time students (unless the student is the applicant or their spouse) and temporary income (such as a gift).
