What is the difference between USDA and FHA Financing?

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I would like to know what the difference between FHA and USDA financing. For example: what are the ratio differences, income limits, time on job, and any other details you might know.
Thanks!

4 comments to What is the difference between USDA and FHA Financing?

  • Flower  says:

    lol The USDA is the Dept of Agriculture which does not finance or guarantee home loans

  • godged  says:

    What the poster is asking about is the USDA Rural Development Loan. It does exist.

    Your best bet is to sit down with a local mortgage banker and have them explain the differences in these programs, and let them help you figure out what is right for your situation.

  • Chris  says:

    USDA offers a loan program based on rural financing. There are median incomes used to qualify as well as number of people who live in the home. USDA loans do not require mortgage insurance and you can finance up to 102% of the property. The loans are even transferable. Please contact me if you would like to know more about it. Credit scores for these loans start at 600.

    I am a mortgage banker in Texas. This can also qualify you for the first time home buyers tax credit.

  • TarheelChip  says:

    FHA=3.5% Down Payment USDA=0% Down Payment

    FHA=Monthly Mortgage Insurance USDA=No Monthly Mortgage Insurance

    FHA=No Income Limits USDA=Income Limits based on costs of living(Area Specific)

    FHA=$303,750 Max Base Loan Amount USDA=No Max Loan Amount(see income limit)

    Many differences exist. Government specifics are unique to you area and situation. Please see a local mortgage banker for more details or feel free to ask me a question at: http://www.usdaHomeApplication.com

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