What your result means
The total combines principal and interest on the fully financed loan, an estimated first-year annual guarantee fee paid monthly, property tax, homeowners insurance, and HOA dues.
Formula and assumptions
For a fully financed fee, note amount = eligible base loan ÷ (1 − upfront fee rate), and upfront fee = note amount − base loan. The first-year monthly guarantee estimate uses the average of twelve scheduled month-end balances × annual fee rate ÷ 12.
- The upfront fee is fully financed.
- The annual fee estimate uses the first year's average scheduled balance and the entered fiscal-year fee rate.
- The property and household are otherwise eligible for the USDA guaranteed program.
Worked example
At a $300,000 eligible base amount with a fully financed 1% fee, the note amount is about $303,030.30 and the fee is about $3,030.30—not simply $3,000—because the fee is calculated from the total note.
Limitations
This calculator does not test rural-area eligibility, household income limits, credit, repayment ability, property standards, or lender requirements.