USDA Rural Home Loan or FHA Home Loan – Which Has The Lowest Cost?

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Our USDA Rural Home Loan will save you a truck load of cash and help you keep your money in your own bank account after closing…

Here’s a quick comparison of the USDA Rural Home Loan and an FHA Mortgage Loan.

Apply for a USDA Loan Online Now: Loan Application

How Much Can Be Financed?

  • 102% of the APPRAISED value!(finance up to $153,000 in this example)

Appraised Value


Purchase Price


Closing Costs & Prepaids


FHA, Conventional or our USDA Rural Home Loan?Which is better for YOU?




Purchase Price




Loan Amount




Principal & Interest




Mortgage Ins. Premium (monthly)




Total Monthly Payment








You can apply for a USDA Guaranteed Rural Home Loan here.

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6 Responses to “USDA Rural Home Loan or FHA Home Loan – Which Has The Lowest Cost?”

  • Sean Rafferty, CMPS on August 13, 2008

    Geez Paul, makes me want to exit Silicon Valley and head for the cow land! Nice niche.

  • Paul Dunn on August 19, 2008

    Thanks guys, I really wanted to point out to the general public that the USDA Guaranteed Rural Development home loan is the most cost effective mortgage money can buy for those who qualify.

  • Jim on October 6, 2008

    Interesting information. I was curious though why the conventional rate in your example is 7.00% and the rate you used for both the FHA and RHL were only 6.50%.

    Normally wouldn’t you expect to see a higher rate for an FHA loan over a conventional loan with low downpayments?


  • pauldunn on October 6, 2008

    The conventional rates should always be higher than FHA or USDA. Part of the reason is that Conventional has risk based pricing adjustments that could make the conventional rate up to a full 1.375% or more higher than either FHA or USDA on any given day.

    For example with today’s pricing sheets a low 600 credit score buyer would pay 1.375% more for a conventional loan with a higher down payment and larger monthly payment than doing either FHA or USDA.

  • Trevor Marsh on January 6, 2010

    Im just wondering what all has to be done to get a house that needs some work under the RHL? I cant find the info. It states like it has to be livable and such but you can use the money for fixin things so I dno cause I found a perfect house but dno if it will work. It is in the right area but needs some work. I need help.

  • pauldunn on January 8, 2010

    Trevor – That will depend on the lender you go through to get the USDA Loan. A few lenders will allow you to set up an escrow repair account at closing to do the repairs prior to closing. Although USDA allows that, I do not know of any lenders willing to do that at this time because the USDA Guarantee cannot be issued until all repairs are made…

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