USDA Loan Calculator 2026: Zero-Down Rural Home Financing
Estimate your USDA Rural Development loan payment with 0% down, a 1% upfront guarantee fee, and the 0.35% annual fee — plus a full monthly payment breakdown.
Loan Details
Monthly Payment Breakdown
USDA Loan Advantages
- • 0% down payment — finance 100% of the purchase price
- • No PMI — the 0.35% annual fee replaces mortgage insurance
- • Below-market interest rates (guaranteed by the USDA)
- • 1% upfront guarantee fee can be rolled into the loan
Check If You Qualify for a USDA Loan
Get matched with USDA-approved lenders — check eligibility and rate quotes with no obligation.
Find USDA LendersHow USDA Loan Payments Are Calculated
Because USDA loans require no down payment, your starting loan amount equals the full purchase price. The 1% upfront guarantee fee ($2,500 on a $250,000 home) is usually financed, so your true principal is slightly higher. Your monthly payment then combines principal and interest on that financed amount plus a 0.35% annual guarantee fee divided into 12 monthly installments. There is no PMI, which keeps USDA payments notably lower than FHA on the same home price.
USDA Eligibility Requirements
- Property must be in a USDA-eligible rural or suburban area
- Household income at or below 115% of the area median income
- Home must be your primary residence
- Minimum credit score of 640 in most cases
- U.S. citizenship or permanent residency required
Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- P&I via standard amortization. Guarantee fee = 1.0% upfront (financed) + 0.35% annual on the loan balance, charged monthly.
Assumptions
- 0% down payment (USDA program structure).
- Upfront 1.0% guarantee fee financed into the loan.
- Annual 0.35% fee applies to the remaining balance and decreases over time (this calculator uses the starting balance — conservative).
Limitations
- Income limits (typically 115% of area median income) are not checked here — verify eligibility on the USDA map.
- Property must be in a USDA-eligible rural/suburban area.
- Does not model the annual fee reduction as the balance amortizes.
Worked Example
- $300,000 → upfront = $3,000 financed. Annual fee = $300,000 × 0.0035 ÷ 12 = $88/mo.
Sources
- USDA RD Instruction 1980-D
- USDA 2026 fee schedule
Primary Sources
Rates, limits, and program rules change. Always confirm current figures with the issuing agency.
USDA Loan Calculator FAQ
What is a USDA loan?+
A USDA Rural Development loan is a government-backed mortgage for homes in eligible rural and suburban areas. Its biggest selling points are 0% down payment and below-market interest rates. USDA loans are issued by private lenders but guaranteed by the U.S. Department of Agriculture, which lets lenders offer better terms than conventional loans.
How much are USDA loan fees?+
USDA loans charge two fees: a 1.0% upfront guarantee fee (typically financed into the loan) and a 0.35% annual fee that is paid monthly as part of your mortgage payment. On a $250,000 home, that means about $2,500 financed upfront and roughly $73 per month in annual fees. These fees fund the USDA loan program and replace PMI, which USDA loans do not require.
Do USDA loans require a down payment?+
No — USDA loans offer 100% financing, meaning you can buy a home with zero down payment. The entire purchase price is financed, plus the 1% upfront guarantee fee can be rolled into the loan. This makes USDA one of the only true zero-down mortgage options, alongside VA loans.
Who qualifies for a USDA loan in 2026?+
To qualify you must: (1) buy a home in an eligible rural or suburban area, (2) have a household income at or below 115% of the area median income, (3) use the home as your primary residence, and (4) have a credit score of at least 640 in most cases (manual underwriting may allow lower). U.S. citizenship or permanent residency is required.
USDA loan vs. FHA loan: which is better?+
USDA loans win when you qualify: 0% down vs. FHA's 3.5%, and no monthly PMI — instead a cheaper 0.35% annual fee. FHA loans work for higher-income buyers, urban locations, or when your credit is below 640. Use our FHA loan calculator to compare payments side by side.
USDA vs FHA vs Conventional: Where 0% Down Wins
| Requirement | USDA | FHA | Conventional |
|---|---|---|---|
| Down payment | 0% | 3.5% | 3-20% |
| Monthly mortgage insurance | 0.35% annual fee | 0.55% MIP (life of loan) | 0.3-1.8% PMI (until 20% equity) |
| Upfront fee | 1.0% guarantee fee | 1.75% MIP | None |
| Credit score | 640 typical | 580 minimum | 620-680 |
| Location limit | Eligible rural/suburban areas | None | None |
| Income limit | 115% of area median | None | None |
| Rate (30-yr fixed, Aug 2026) | ~6.4% | ~6.5% | ~6.625% |
Rates: Freddie Mac PMMS 2026-08 + USDA published rates. Your rate depends on credit, lender, and lock timing.
Real Monthly Payment: $250,000 Home, 0% Down
| Cost component | Monthly |
|---|---|
| Principal & interest ($250,000 @ 6.4%, 30 yr) | $1,565 |
| USDA annual fee (0.35%) | $73 |
| Property tax (1.1% avg) | $229 |
| Homeowners insurance | $120 |
| Total PITI | $1,987 |
Same home with 3.5% down FHA: about $2,070/month — $83 more, because FHA's 0.55% MIP costs more than USDA's 0.35% annual fee and you still pay PMI-style insurance for the life of the loan. That $83/month is $30,000 over 30 years.
USDA 2026 numbers that actually matter
- • Income cap: 115% of area median income — a family of 4 in most counties can earn up to $90,000-110,000 and still qualify.
- • Upfront guarantee fee: 1.0% (financed into the loan — no cash at closing).
- • Annual fee: 0.35% of the balance, paid monthly. Unlike PMI, it never drops off — it stays for the life of the loan.
- • Credit: 640+ for automated approval; manual underwriting can go lower.
- • Eligibility: ~97% of the U.S. landmass qualifies, but only ~40% of the population lives there — check the USDA eligibility map before falling in love with a house.
Sources: USDA Rural Development handbook, Freddie Mac PMMS 2026-08. Full rules: USDA loan requirements guide.
USDA rates & requirements
See today's USDA mortgage rates and check the full USDA loan requirements.