USDA Rural Housing loans use their own two-part guarantee fee structure — a one-time upfront fee plus an ongoing annual fee billed monthly.
How it works
The loan amount times 1.00% gives the upfront guarantee fee (typically financed into the loan). The loan amount times 0.35% gives the annual fee, divided by 12 for the monthly cost.
What this does not include
This estimates the annual fee against the original loan amount rather than a declining balance — as the loan amortizes, the actual annual fee gradually decreases since it’s assessed against the remaining balance each year.
How to use this calculator
- Enter the loan amount.
Frequently asked questions
Who qualifies for a USDA loan?
USDA loans are limited to eligible rural and some suburban areas and require meeting household income limits — they’re not available for all property locations or all income levels.
Does USDA guarantee fee ever go away?
The annual fee continues for the life of the loan (declining slightly as the balance amortizes) — unlike conventional PMI, there’s no loan-to-value threshold that automatically cancels it.
How does the USDA fee compare to FHA MIP?
USDA’s combined fees (1% upfront, 0.35% annual) are generally lower than FHA’s (1.75% upfront, up to 0.75% annual), one reason USDA loans can be attractive for eligible rural buyers.
