What is the minimum down payment for a USDA loan?

USDA loans require 0% down payment - one of the only true zero-down mortgage options available. This makes homeownership accessible for rural and suburban buyers who meet income requirements.

What are USDA loan income limits for 2026?

USDA income limits vary by county and household size. For 2026, the standard limit is $110,650 for 1-4 person households and $146,050 for 5-8 person households in most areas. High-cost areas have higher limits.

What credit score do I need for a USDA loan?

Most USDA lenders require a minimum credit score of 640 for automatic approval. Scores between 580-639 may qualify with manual underwriting. Some lenders accept scores as low as 580.

What areas qualify for USDA loans?

USDA loans are available in rural and suburban areas with populations under 35,000. Surprisingly, 97% of U.S. land area qualifies, including many areas near major cities. Use the USDA eligibility map to check your address.

🏡 USDA LOANS

USDA Loan Calculator 2026: $0 Down Payment

Calculate your USDA loan payment with zero down payment. Current rates: 5.75% (Jan 2026). See if you qualify for rural home financing!

Down Payment

Zero down!

Min Credit Score

640

580 possible

2026 Rate

5.75%

30-year fixed

Coverage

97%

of US land area

🎯 USDA Loan Benefits: Zero down payment, competitive rates, no PMI (just 0.35% annual fee), and flexible credit requirements. Perfect for rural and suburban homebuyers!

💰 Check Your Eligibility: See if your area and income qualify for USDA financing.

Check USDA Eligibility →

Mortgage Calculator

Home Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (years)

Annual Property Tax ($)

Annual Home Insurance ($)

Additional Monthly Payment ($)

Monthly Payment

$1,616

Principal & Interest:$1,216

Property Tax:$300

Home Insurance:$100

Payment Breakdown

Loan Summary

Total Principal:$240,000

Total Interest:$197,776

Total Cost:$437,776

Understanding Your Mortgage

Principal vs Interest

In the early years of your mortgage, most of your monthly payment goes toward interest. As you pay down your loan, more goes toward principal.

Extra Payments

Making even small additional payments can significantly reduce your loan term and save thousands in interest over the life of your loan.

Amortization

An amortization schedule shows how your loan balance decreases over time as you make payments, eventually reaching zero at the end of your loan term.

What is a USDA Loan?

A USDA loan is a mortgage backed by the U.S. Department of Agriculture, designed to help low-to-moderate income buyers purchase homes in eligible rural and suburban areas. The biggest advantage? Zero down payment required!

USDA Loan Requirements 2026

✅ Down Payment: 0% (zero down payment required)
✅ Credit Score: 640+ (580+ with manual underwriting)
✅ Income Limit: $110,650 (1-4 persons) / $146,050 (5-8 persons)
✅ DTI Ratio: 41% max (up to 44% with compensating factors)
✅ Property Location: Must be in USDA-eligible rural area
✅ Primary Residence: Must be your primary home (no investment properties)

USDA Loan Fees Explained

USDA loans don't have traditional PMI, but they do have two fees:

Upfront Guarantee Fee: 1% of loan amount (can be financed into loan)
Annual Fee: 0.35% of remaining balance (paid monthly)

For a $250,000 loan, that's $2,500 upfront and about $73/month in annual fees - much lower than FHA's 0.85% MIP!

USDA vs FHA vs Conventional Loans

Feature	USDA	FHA	Conventional
Min Down Payment	0%	3.5%	3-5%
Min Credit Score	640	580	620
Mortgage Insurance	0.35%/year	0.85%/year	0.5-1%/year
Income Limits	Yes	No	No
Location Limits	Rural areas	No	No

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