USDA vs FHA Mortgage Insurance Rates

USDA vs FHA Mortgage Insurance Rates

Do you know the difference between USDA and FHA?  With FHA or USDA you will have mortgage insurance or PMI (private mortgage insurance).  98% of home loans with less than 20% down-payment will have some sort of PMI (there are many types – call me for an explanation). At the time of this writing FHA PMI is at 1.35% per Month vs. USDA at 0.40% per month ~ a huge difference!  While FHA allows you to purchase in a larger city – USDA is only for Rural areas.  So even though both of these programs have Mortgage insurance USDA premiums are about 70% less than FHA.

 

 

CATEGORY: USDA Updates

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