Result
How to use this calculator
Enter the home price, interest rate, loan term, and yearly property tax and insurance. The calculator assumes the common USDA setup: no down payment, the 1% upfront guarantee fee financed into the loan, and the 0.35% annual fee divided into monthly payments.
The formula
Loan amount = price × 1.01 (1% upfront fee financed). Principal and interest use the standard amortization formula M = L × r(1+r)^n ÷ ((1+r)^n − 1), with r = annual rate ÷ 12. Monthly payment = P&I + loan × 0.35% ÷ 12 + tax ÷ 12 + insurance ÷ 12.
Example: $300,000 at 6.5% for 30 years
Loan with financed fee: $303,000 → P&I ≈ $1,915.17. Annual fee: $88.38/mo. With $300/mo tax and $100/mo insurance, total ≈ $2,403.54 per month.
FAQ
What is a USDA loan?
A zero-down-payment mortgage backed by the USDA Rural Development program for homes in eligible rural and some suburban areas, with household income limits that vary by county.
What are the USDA guarantee fees?
An upfront fee (1% of the loan, usually financed) plus an annual fee (0.35% of the loan balance, paid monthly). Both are set by the USDA and replace conventional mortgage insurance.
Can I really buy with no down payment?
Yes — 100% financing is the defining feature of USDA loans, subject to eligibility, income limits, and lender approval.
Does the payment include escrow?
This calculator adds property tax and insurance you enter, similar to an escrowed payment. HOA dues and other escrow items are not included.