Home buyers can figure out their monthly USDA mortgage payments by using the USDA payment calculator on the right side of the screen. This USDA loan payment calculator will help provide an actual monthly payment based on the principal, interest, taxes, home insurance and USDA monthly mortgage insurance (PMI)
Home buyers should note a few things when using the USDA mortgage calculator:
- You will want to add 1% to your base loan amount to account for the one-time USDA Guarantee fee. Example: if you are purchasing a $200,000 home, use $202,000 as your final loan amount in the USDA loan payment calculator. $300,000 home, use $303,000 as your loan amount and so on. This applies to both the USDA purchase and USDA Refinance program.
- The USDA interest rate noted is assuming best case scenario ( high credit scores, etc) Lower credit score borrowers may have a higher interest rate.
USDA Rural Housing generally requires that home buyers’ housing-related expenses not exceed 30% of their gross qualifying income. So if you make a gross income (before taxes) of $4,000 per month – your housing payment with taxes, home insurance, mortgage insurance plus any applicable homeowners association fees included should not exceed $1,200 per month. The income used for loan qualifying is only for those applicants actually listed on the loan application.
Total debt like car payments, credit card payments, etc plus all housing expenses should be no greater than 43%. Certain exceptions to these debt-to-income ratio limits apply to home buyers with strong compensating factors like a high credit score, savings, etc.
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