Below we have outlined some of the main difference between the FHA and USDA Rural housing home loans.
1. The key difference – USDA is the last remaining 100% home loan available in Florida for non military home buyers. FHA home loans require a minimum 3.5% down payment.
2. USDA and FHA loans both require a one- time guarantee or funding fee that is included in the home buyers loan. The guarantee fee for USDA purchase loans is currently 2%. The FHA guarantee fee is 1%.
3. Both USDA and FHA mortgages require monthly mortgage insurance costs – most people know this term to be “PMI” or private mortgage insurance. However, with government loans this is known has a monthly or annual fee. The monthly premium costs of USDA is cheaper than FHA… more than 70% less per month. However, the FHA monthly premium can be dropped or canceled once the home owners loan reaches 78% loan to value. The USDA monthly mortgage insurance is paid throughout the life of the loan regardless of the future loan to value.
EDIT 2013: FHA mortgage insurance is now required to be paid for the life of the loan, just like USDA.
4. USDA has certain eligibility requirements that must be met in regards to household income and property location. Please read here for more details. FHA does not have this – property to be purchases can be located anywhere, income can be unlimited.
5. Both FHA and USDA Rural Development loans have nearly the same qualifying requirements in regards to credit, job history, etc.
All government loan programs are safe secure mortgages with fix rate terms and no pre payment penalty of any kind. The USDA and FHA government loan programs are especially good for Florida first time home buyers looking to purchase their first home with min money out of pocket. What loan is right for you depends on your location, income and other factors. Call us 7 days a week at 800-743-7556 and we would be happy to discuss what loan option fits your needs.
For more information on the Florida USDA loan please visit – www.UsdaMortgageSource.com
For more information on the Florida FHA loan please visit – www.FhaMortgageSource.com
USDA Mortgage Source is Florida’s leading rural housing resource. Serving all of Florida including: Apopka FL | Archer FL| Aventura FL| Boca Raton FL | Bradenton FL| Brandon FL| Cape Coral FL| Clearwater FL| Clermont FL |Cocoa Beach FL | Coconut Creek FL | Coral Gables FL| Crestview FL| Crystal River FL| Daytona Beach FL| DeLand FL | Deltona FL| Delray Beach FL | Destin FL| Dunedin FL | Englewood FL| Fernandina Beach FL| Flagler Beach FL| Fort Lauderdale FL | Fort Myers FL | Fort Pierce FL | Fort Walton Beach FL| Gainesville FL| Green Cove Springs FL| Hallandale FL| High Springs FL| Hobe Sound FL| Hollywood FL| Homestead FL| Inverness FL | Jacksonville FL| Jasper FL |Jupiter FL| Key Largo FL| Key West FL| Keystone Heights FL| Lady Lake FL| Lakeland FL| Lake City FL| Lake Mary FL| Land O Lakes FL|Live Oak FL| MacClenny FL| Madison FL| Melbourne FL| Miami Dade FL | Milton FL| Mount Dora FL | Naples FL| Ocala FL | Ocoee FL |Ojus FL | Orange Park FL| Orlando FL| Ormond Beach FL| Palatka FL| Palm Bay FL| Palm Coast FL | Panama City Beach FL| Pensacola FL| Pompano Beach FL| Port Charlotte FL| Port St. Lucie FL | Punta Gorda FL| Santa Rosa FL| Sarasota FL | Siesta Key FL| Spring Hill FL | St. Augustine FL| Starke FL| St. Petersburg FL | Sunny Isles FL| Tallahassee FL| Tamarac FL| Tampa FL| Titusville FL | Venice FL| Vero Beach FL| Weeki Wachee FL| Wesley Chapel FL| West Palm Beach FL | Winter Garden FL| Winter Haven FL| Winter Park FL| Winter Springs FL| White Springs FL| Zephyrhills FL