Texas Home Loan
Insider Angelo Christian

It is wise when looking to buy a home to compare different types of loan products and programs. Perhaps one will suit your needs more than the other. We can compare USDA with FHA and Conventional to see which options show the most benefit and make the most sense.

Here is a loan scenario:

$100k Mortgage
30 year fixed rate n at 4% interest
Property taxes $50 per month
Homeowners insurance $50 per month

USDA Home Loan
No money down or to closing
Mortgage $477 per month
Taxes $50
Insurance $50
Total payment $577

FHA Home Loan
3.5% down, $3,500
Mortgage $477 per month
Taxes $50
Insurance $50
PMI $96
Total payment $673

Conventional  Home Loan
5% down, $5,000
Mortgage $477 per month
Taxes $50
Insurance $50
PMI $120
Total payment $697

As you can clearly see the USDA loan has the most benefits. No down payment, and lowest payment out of all three options.