Expert: Bobbi Buehl - 9/23/2009

Question
Hi,
What is the advantage of a USDA loan over an FHA loan?

Are there any downsides?

Thanks.

Answer
Hey Joe,

There is a significant advantage in going with a USDA purchase verses FHA.

  1) No down payment
  2) No monthly mortgage insurance charge
  3) More credit score forgiveness, which means you only need a 600 credit score. Whereas the FHA requires from anywhere between 620 to 660, depending on the bank.

As to any downsides; not a one!

Hope that helps answer your question, and good luck in your home buying.... :)

Bobbi Buehl
877-928-4891