USDA Loan Mortgage Calculator
USDA Rural Development Loan
USDA loans help moderate-to-low income borrowers buy homes in eligible rural and suburban areas. They require no down payment and offer below-market interest rates.
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Payment Breakdown
USDA Loan Requirements
- •Property must be in USDA-eligible rural area
- •Household income below 115% of area median
- •Minimum 640 credit score recommended
- •Must be primary residence
- •Guarantee fee of 1% upfront + 0.35% annual
Pros
- +No down payment required
- +Below-market interest rates
- +Low monthly mortgage insurance
- +Flexible credit requirements
- +Closing costs can be financed or paid by seller
Cons
- −Geographic restrictions (rural/suburban areas only)
- −Income limits apply
- −Guarantee fee required
- −Primary residence only
- −Can take longer to process than conventional
USDA Loan Payments by Home Price
| Home Price | Down (0%) | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|---|
| $150,000 | $0 | $150,000 | $948 | $191,317 |
| $200,000 | $0 | $200,000 | $1,264 | $255,089 |
| $250,000 | $0 | $250,000 | $1,580 | $318,861 |
| $300,000 | $0 | $300,000 | $1,896 | $382,633 |
| $350,000 | $0 | $350,000 | $2,212 | $446,406 |
| $400,000 | $0 | $400,000 | $2,528 | $510,178 |
| $450,000 | $0 | $450,000 | $2,844 | $573,950 |
| $500,000 | $0 | $500,000 | $3,160 | $637,722 |
| $600,000 | $0 | $600,000 | $3,792 | $765,267 |
| $700,000 | $0 | $700,000 | $4,424 | $892,811 |
| $750,000 | $0 | $750,000 | $4,741 | $956,584 |
| $800,000 | $0 | $800,000 | $5,057 | $1,020,356 |
| $900,000 | $0 | $900,000 | $5,689 | $1,147,900 |
| $1,000,000 | $0 | $1,000,000 | $6,321 | $1,275,445 |
$400,000 USDA Loan by Rate
| Rate | 15-Year | 30-Year | Total Interest (30yr) |
|---|---|---|---|
| 5.5% | $3,268 | $2,271 | $417,616 |
| 6% | $3,375 | $2,398 | $463,353 |
| 6.5% | $3,484 | $2,528 | $510,178 |
| 6.75% | $3,540 | $2,594 | $533,981 |
| 7% | $3,595 | $2,661 | $558,036 |
| 7.25% | $3,651 | $2,729 | $582,334 |
| 7.5% | $3,708 | $2,797 | $606,869 |
| 8% | $3,823 | $2,935 | $656,621 |
True Cost: USDA Loan on a $400,000 Home
Guide to USDA Loan Mortgages
USDA Rural Development Loan (USDA Loan) loans are designed for specific borrower profiles. Understanding the nuances helps you decide if this loan type fits your situation.
- Down payment flexibility. USDA Loan loans require as little as 0% down ($0 on a $400,000 home). However, lower down payments mean a larger loan and potentially mortgage insurance.
- Rate considerations. Typical USDA Loan rates around 6.5% are below conventional rates. This lower rate can save thousands over the life of the loan.
- Loan limits matter. USDA Loan loans have no strict limit — loan amounts depend on lender underwriting and your financial profile.
- Compare before committing. Even if you qualify for a USDA Loan, compare it against conventional and other loan types. The best loan depends on your down payment, credit score, and long-term plans.
Frequently Asked Questions — USDA Loan Loans
What is a USDA Loan loan?
USDA Rural Development Loan (USDA Loan) is a mortgage program backed by the U.S. Department of Agriculture for eligible rural and suburban homebuyers.
What is the minimum down payment for a USDA Loan?
The minimum down payment is 0% ($0 on a $400,000 home). This is one of the few loan types that requires no down payment at all.
What credit score do I need for a USDA Loan?
USDA loans typically require a 640+ credit score. Higher scores generally unlock lower rates.
What is the monthly payment on a USDA Loan?
On a $400,000 home with 0% down at 6.5%, the monthly payment is $2,528. This is principal and interest only — taxes, insurance, and any mortgage insurance are additional.
Does a USDA Loan require mortgage insurance?
USDA loans have a 1% upfront guarantee fee and 0.35% annual fee, but these are lower than FHA premiums.
What is the USDA Loan loan limit?
USDA Loan loans don't have a strict limit — the maximum depends on your lender's underwriting criteria and your financial profile.
How do I apply for a USDA Loan?
Start by getting pre-approved with a USDA-approved lender. You'll need proof of income, tax returns, bank statements, and a credit check. USDA loans also require income eligibility verification and the property must be in an eligible rural area.
Is a USDA Loan better than a conventional mortgage?
USDA Loan loans are better if you buy in an eligible rural area and meet income limits — 0% down is a significant benefit. Otherwise, conventional loans may offer lower overall costs.