which one is better, USDA or 3% down FHA loan?

Asked by Me, San Francisco, CA Wed Mar 27, 2013

a friend of ours is looking to buy also. they live are looking to buy wherever it is affordable, yet safe. they want to get opinions on those two loans. what are your thoughts on those 2 loan programs

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Robert Chomentowski’s answer
Robert Chome…, , San Diego, CA
Wed Mar 27, 2013
You can only get a USDA loan in a designated rural area. USDA is better if you have a choice between the two. USDA is zero down 100% financing and does not have monthly mortgage insurance. FHA is min 3.5% down and has monthly mortgage insurance. So your payment will likely be lower with a USDA loan.
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thanks robert for the info. i was just informed that with USDA loan, there is insurance, it is just less than FHA.
can you please tell me your source that says that there is no insurance with USDA? thanks!
Flag Wed Mar 27, 2013
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