So I often get asked, “why should I purchase a home using the USDA Zero Down loan when I have money for downpayment and can even put 20% down ?”
Truth is, your money is better ‘grown’ in other investments than remaining dormant as equity in your home. You see, historically house prices rise anyway, regardless of whether you create equity at the beginning or not.
So why not take your hard earned money and put it to better use? Like growing it for your kids’ college education or helping your parents through their retirement years?
FHA vs USDA? In terms of Payment comparison, Remember, FHA has lower Upfront Mortgage Insurance (1%) than USDA’s upfront Guarantee Fee (3.5%). But FHA has monthly mortgage insurance where USDA Zero down does not. Be sure to check out our Super Mortgage Calculator which compares these loans with just a few clicks.