Is a USDA loan right for you?
Looking to buy a home in a rural or suburban area? A USDA loan may offer an affordable path to homeownership for eligible buyers.
Backed by the U.S. Department of Agriculture, USDA loans are designed to encourage homeownership in designated areas. These loans are available through approved lenders and may offer benefits such as no down payment and reduced upfront costs.
Benefits of a USDA loan
USDA loans offer a range of benefits for eligible borrowers, making them a popular choice for many families:
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Zero down payment options may be available
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Available to both first-time and repeat homebuyers
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No requirement for homebuyer education courses
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Designed for eligible rural and suburban properties
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Competitive rates and flexible terms
USDA loan eligibility requirements
Eligibility depends on a mix of financial and property-related factors. Common criteria may include:
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A credit history that meets current lending standards
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Stable and verifiable income
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Property typically must be located in a qualified area
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Household income within allowable limits
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Property used as the borrower’s primary residence
Curious if a USDA loan fits your situation? We can help you review your options and determine eligibility.
Check out what your monthly payment could be by using our USDAÂ Mortgage Calculator…
Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!
Principal & Interest (P&I)
$
Annual Guarantee Fee
$
Taxes & HOA
$
Homeowners Insurance
$
Purchase Price
Home Value
$
- Down Payment
$
Current Mortgage Balance
$
+ Cash Out
$
+ Upfront Guarantee Fee
$
Total Loan Amount
New Loan Amount
$
Home Equity After Cash Out
$
Upfront Guarantee Fee
$
Estimated Taxes & Insurance
Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Annual Guarantee Fee
The USDA Annual Fee is 0.35% of the loan amount and is paid to the USDA to compensate mortgage lenders should a mortgage go into default. This fee is paid at closing and borrowers typically choose to finance it into the loan. The USDA Annual Fee is lumped into your monthly payment and is paid for the life of the loan.
USDA Funding Fee / Upfront Guarantee Fee
The USDA Funding Fee or Upfront Guarantee Fee is paid to the USDA to help fund the program. The USDA Funding fee is paid at closing and typically financed into the loan. The USDA Funding Fee is 1.0% of the total loan amount.
Amount Financed
Purchase Price (-) Down Payment (+) Upfront Guarantee Fee
Estimated Payment
$ /mo
Loan amount
$
Down payment
$
Cash Out
$
Home Equity After Cashout
$
Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
Upfront guarantee fee
$
Annual guarantee fee rate
$
Annual guarantee fee
$ /mo
HOA dues
$
Payment Breakdown
Amortization
Principal vs. Interest
Amortization Schedule Breakdown
Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan.
Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
- Principal payments: $$240,000 (the amount borrowed)
- Interest payments: $$297,554 (the cost of borrowing)
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