How to Calculate USDA Loan
Calculate a USDA rural development loan with $0 down: the 1% upfront guarantee fee financed into the loan, monthly principal and interest, the 0.35% annual guarantee fee, and total interest over the term.
The Formula
totalLoan = homePrice * (1 - downPercent / 100) * 1.01; monthlyGuaranteeFee = totalLoan * 0.35 / 100 / 12The usda loan formula uses the mathematical relationship: totalLoan = homePrice * (1 - downPercent / 100) * 1.01; monthlyGuaranteeFee = totalLoan * 0.35 / 100 / 12. Each variable in the formula represents a measurable quantity that affects the final result.
Step-by-Step Method
- 1Identify all input values needed for the usda loan calculation.
- 2Substitute your known values into the formula: totalLoan = homePrice * (1 - downPercent / 100) * 1.01; mont.
- 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
- 4Check that your result has the correct units and is within a reasonable range.
- 5Verify using the interactive USDA Loan Calculator to confirm your answer.
Related Topics
USDA loanrural development loanzero down mortgageguarantee feeno down payment
Use the Interactive Calculator
Skip the manual math — get instant results with our free USDA Loan calculator.