Is the USDA stricter than the FHA?

USDA loans require a higher credit score than FHA loans, and they also carry geographical restrictions for where you can buy a qualifying home. USDA loans also have income limits for prospective homeowners, while FHA loans impose no such limits.

What is one advantage a USDA loan has over an FHA loan?

The absence of a down payment requirement is a major advantage USDA loans over FHA loans, which carry a minimum down payment of 3.5%. Avoiding a down payment can save a home buyer a large amount of money upfront.

Can I take PMI off a USDA loan?

USDA loans don’t have traditional mortgage insurance like conventional loans but instead require what’s known as an upfront and annual guarantee fee. The annual guarantee fee is paid monthly over the life of the loan and can’t be removed.

The Difference Between USDA And FHA Loans