FHA Loan Vs. USDA Loan


A person that is on the look out for a loan is going to be wary of what they’re getting into. You never want a loan that is going to cause issues in the long-term or might be impossible to pay back. To ensure this does not take place, you will have to decide between two options.

You can go with an FHA loan or a USDA loan.

Here are the differences between both, so a person can make a smart decision about which direction to take moving forward.

FHA Loan

This is a typical loan that is offered on the market by the Federal Housing Administration (FHA).

It’s main points include

1) Low Down Payment (3.5% Down Payment)
2) Can Buy House Anywhere (Rural Or Urban)
3) Limitation On Price Of Home (Based On Income)

These are the core details of an FHA loan for those who are intrigued.


Let’s move on the USDA loan for those who are now starting to contemplate this option.

A USDA loan doesn’t require a down payment (i.e. 100% loan offered) but has to be based in a “rural” area likeĀ Long Island, New York as described by the government.

This can limit where a person moves.

There is also a limit to one’s income before approval goes through. It is best suited for those who can pay back the extensive loan.

The choice is all about understanding what is going to best suit your needs because at the end that is all that matters. If you are not able to pinpoint what you require, continue to take your time and do your research. There shouldn’t be any rush when it comes to a loan because you are going to get bound by what you have signed up for and that is tough to get out of.