About USDA Home Loans
The USDA loan program (officially known as the Section 502 Direct Loan Program) helps low-to-moderate income buyers purchase homes in eligible rural areas with no down payment required. Our USDA mortgage calculator helps you estimate monthly payments, check eligibility, and understand the costs of this government-backed home loan program.
Key Benefits of USDA Loans
- • No down payment required - 100% financing available
- • Competitive interest rates - often lower than conventional loans
- • Lower mortgage insurance costs compared to FHA loans
- • Flexible credit requirements - easier qualification
USDA Loan Eligibility Requirements
- • Property must be in eligible rural area (check USDA eligibility map)
- • Household income limits apply based on location and family size
- • Primary residence only - no investment properties
- • U.S. citizen or permanent resident status required
USDA Loan Costs and Fees
| Fee Type | Amount | When Paid |
|---|---|---|
| Upfront Guarantee Fee | 1% of loan amount | Financed into loan |
| Annual Fee | 0.35% of loan amount | Monthly with payment |
USDA Loan Income Limits (2023 Examples)
- • 1-4 person household: $103,500 (most areas)
- • 5+ person household: $136,600 (most areas)
- • Higher limits in high-cost areas
- • Limits vary by county and state
Note: Income limits are adjusted annually and vary by location. Use our USDA mortgage calculator to check current limits for your area.
Important Notes About USDA Rural Development Loans
- USDA loans are for primary residences only (no investment properties or second homes)
- Properties must meet USDA minimum property requirements including adequate utilities and structural soundness
- Income limits include all household members, not just borrowers on the mortgage
- Always check the official USDA eligibility map for your specific property address as boundaries change
- USDA loans have two types: Direct Loans (from USDA) and Guaranteed Loans (from approved lenders)
How to Use This USDA Mortgage Calculator
Our USDA loan calculator helps you estimate:
- Monthly mortgage payments including USDA guarantee fees
- Total interest paid over the life of the loan
- Income eligibility based on your household size and location
- Total housing costs including taxes and insurance (optional)
For official eligibility determination, consult with a USDA-approved lender or your local Rural Development office.