USDA Loan Calculator for Zero Down Payment

Understanding what your monthly mortgage payment will cost helps you plan your budget and prepare for homeownership. Using a loan calculator that accounts for the entire loan cost with no down payment will give you a more accurate idea of what your payments might look like.


What is a USDA Loan?

A USDA Rural Development Loan is a mortgage program offered by the U.S. Department of Agriculture, providing affordable home financing to low to moderate-income families in rural and suburban areas. With low interest rates and no down payment requirement, borrowers looking for more attainable housing gravitate toward these loans.


USDA Loans Mortgage Calculator

If you’re looking into USDA Loans in Michigan and want to get a clearer picture of what your potential mortgage payments might be, check out this mortgage calculator tool.


*Treadstone Funding and its employees are not CPAs or financial advisors. Not financial advice. All information provided is for educational purposes only. Contact a licensed Loan Officer before proceeding.


About the Rural Development Loan Calculator

The USDA Rural Development Loan calculator contains pre-filled figures that are for educational purposes only. This tool is designed to give a general estimate of what borrowers should expect when purchasing their home in Michigan with a USDA Loan. The most common loan terms are 30-year fixed, and you can explore trends of interest rates on our website.


Why to use a USDA Rural Development Loan

Borrowers flock toward USDA Loans in Michigan for a variety of reasons, notably the zero down payment highlight, which allows them to finance 100% of their home. These government loans also offer better credit flexibility and low mortgage insurance. Plus, there are no required minimum cash or assets that come into play with RD Loans.


Breaking Down a USDA Rural Loan Payment

As with any mortgage payment, there are several factors that work together to create the total payment amount.

Interest Rates
The interest rate plays a crucial role in determining the overall cost of your loan payment since it impacts the amount of interest paid over the life of the loan. Interest rates for USDA Loans in Michigan are typically lower than the interest rates tied to Conventional Loans.

Home Insurance
Home insurance, a vital component, protects your property and possessions. Lenders often require borrowers to maintain adequate coverage, adding to the overall loan payment.

Property Taxes
Property taxes contribute to the total payment and vary based on local rates and property values.

Length of Loan / Loan Term
The length of the loan, or loan term, influences monthly payments. Shorter terms may have higher monthly payments but lower overall interest costs, while longer terms offer lower monthly payments but higher interest expenses.

While private mortgage insurance (PMI) is necessary for conventional loans with down payments below 20%, it is not a requirement for USDA Loans in Michigan.

HOA fees (if applicable)
Homeowners Association (HOA) fees, if applicable, cover shared community expenses and amenities. Although these fees are uncommon in qualifying areas, they can impact the overall affordability of the USDA Rural Loan payment.


Get a USDA Rural Development Loan

Looking for a USDA Rural Development Loan seamlessly tailored to your unique situation? At Treadstone, our team navigates the complexities, securing you the best terms, low-interest rates, and a stress-free path to homeownership. Let our specialists guide you through the process.



Are closing costs included in the loan?
No, USDA Rural Development Loans generally do not allow financing for closing costs. Instead, closing costs are a single payment made at closing. The seller or the lender may contribute towards these costs, but borrowers often pay closing costs separately, unless negotiated otherwise.

What types of properties are eligible for USDA loans in rural Michigan?
USDA Loans in rural Michigan typically apply to single-family homes, townhouses, and condos. Eligible properties must meet USDA guidelines and be in designated rural or suburban areas. To be covered, the property must be the borrower’s primary residence and cannot be a multi-family home, farm, or vacation home. To ensure eligibility, consult the USDA property eligibility map or contact one of our USDA-approved lending officers for detailed information.

What other zero down payment home loans are there?
Other 0% down payment options include VA Loans for eligible military veterans, and some conventional loans with private mortgage insurance (PMI). Other programs like MSHDA offer down payment assistance that can get your down payment lowered, close to zero. Additionally, state-specific programs and certain credit union offerings may provide zero-down financing. Explore these alternatives with a qualified agent at Treadstone to find the best fit for your home buying needs.

Gain a better idea of what your payments may look like