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USDA or FHA...

I plan to purchase a single family home in the next six months.   I have narrowed down mortgage options to FHA and USDA due to low or no down payment requirements.   Any advice or experiences anyone would like to share would be greatly appreciated!  
  • February 13 2014 - Huntsville
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Answers (6)

Best Answer

If you can go USDA, do that.  The fees associated with a USDA loan are much lower than FHA.  Not to mention USDA requires no down payment and you can finance closing costs up to the appraised value of the home.  So if the value of the property comes in higher than the sales price, you can use that difference to finance closing costs.  Not sure if you have already spoken to a Loan Officer at this point, but you should do that now to make sure you will qualify (credit AND income) - Check the "Find a Pro" section here on Zillow - there are a lot of great professionals here.
  • February 14 2014
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THE ONLY CONCERN WITH USDA...is it sometimes runs out of money due to the federal budget ..ie when they run out of money this program gets moth balled sometimes for a bit.......just make sure your eyes are wide open!
  • February 26 2014
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USDA blows the doors off of FHA
  • February 14 2014
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I may have a 3RD option for you, 100% Loan and no MI. If you would like to know more send me an email from my profile page and we can discuss.  
  • February 14 2014
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I meet the income requirements for the USDA "guaranteed" loan and I believe the two homes I am looking at meet the location requirements.   I'm just not sure what the pros and cons are for each type of financing.  
  • February 13 2014
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If you can income qualify using USDA and save your down payment for upgrades to appliances and extra. I do offer both programs and in some case you may qualify for state assistance with down payment.
  • February 13 2014
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