USDA Loan Mortgage Calculator 2026: Free Tool + Complete Guide

MT
Michael Thompson
USDA & Rural Housing Specialist • 14+ Years Experience
Published January 26, 2026 • 30 min read

Want to buy a home with $0 down payment? USDA loans make it possible for rural and suburban buyers! In 2026, USDA loans help 140,000+ families buy homes with no down payment, low rates (5.875%), and flexible credit (640+ score). This complete guide includes a free USDA loan calculator, eligibility requirements, income limits, and approved areas.

🏡 Quick Facts (January 2026)

  • 0% down payment required (100% financing available)
  • Low rates: 5.875% (30-year fixed) - 0.25% lower than conventional
  • Fees: 1% upfront guarantee fee + 0.35% annual fee
  • 📍Eligible areas: 97% of US land (rural + suburban)
Check USDA Loan Eligibility →

USDA Loan Payment Calculator (2026 Rates)

Use this USDA loan calculator to estimate your monthly payment with 0% down. Includes upfront guarantee fee (1%) and annual fee (0.35%).

🧮 USDA Loan Calculator

📊 Estimated Monthly Payment

Principal & Interest:$1,469/month
Annual Fee (0.35%):+$73/month
Property Tax (est.):+$208/month
Homeowners Insurance:+$125/month
Total Monthly Payment:$1,875/month

Upfront Guarantee Fee: $2,500 (1% of loan) - Can be financed into loan

Get Pre-Approved for USDA Loan →

💡 How USDA Fees Work

USDA loans have TWO fees that replace traditional PMI:

  • 1.Upfront Guarantee Fee (1%): One-time fee of 1% of loan amount. On $250K loan = $2,500. Can be financed into loan (most borrowers do this).
  • 2.Annual Fee (0.35%): Ongoing fee of 0.35% per year, divided by 12 months. On $250K loan = $875/year = $73/month. Lasts for life of loan.

Total USDA fees are LOWER than FHA MIP! USDA annual fee (0.35%) vs FHA MIP (0.55-0.85%). Plus USDA upfront fee (1%) vs FHA upfront MIP (1.75%).

USDA Loan Eligibility Requirements 2026

To qualify for a USDA loan with 0% down, you must meet these 5 requirements:

1. Property Location (Rural/Suburban)

Property must be in a USDA-eligible area (rural or suburban). Surprisingly, 97% of US land qualifies, including suburbs of major cities!

✅ Check Eligibility:

  • • Visit eligibility.sc.egov.usda.gov
  • • Enter property address
  • • See instant eligibility (green = eligible)
  • • Most suburbs with population <35,000 qualify

2. Income Limits (115% of Area Median)

Household income must be ≤115% of area median income. Limits vary by county and household size.

2026 Income Limits (Examples):

  • 1-4 people: $103,500 (most areas) | $136,800 (high-cost)
  • 5-8 people: $136,600 (most areas) | $180,500 (high-cost)
  • Check your area: eligibility.sc.egov.usda.gov

3. Credit Score (640+ Recommended)

USDA doesn't have an official minimum credit score, but most lenders require 640+ for automated underwriting.

Credit Requirements:

  • 640+ credit: Automated approval (fastest)
  • 580-639 credit: Manual underwriting (slower, stricter)
  • <580 credit: Very difficult to get approved

4. Debt-to-Income Ratio (41% Max)

Total DTI must be ≤41% (housing + all debts). USDA is stricter than FHA (50% max).

DTI Calculation:

  • Housing ratio: ≤29% (mortgage payment ÷ gross income)
  • Total DTI: ≤41% (all debts ÷ gross income)
  • Example: $5,000/month income = max $2,050 total debts

5. Primary Residence Only

Property must be your primary residence. No investment properties, vacation homes, or second homes.

Occupancy Rules:

  • • Must move in within 60 days of closing
  • • Must live there as primary residence
  • • Cannot rent out the property
  • • Single-family homes, townhomes, condos eligible

Ready to Buy with $0 Down?

Get pre-approved for a USDA loan with 0% down payment. Check your eligibility, compare rates, and start your homeownership journey today.

Get Pre-Approved for USDA Loan →