FHA Loans vs USDA Loans (2021) - Which Is Better For You?

What's the difference between an FHA loan and a USDA loan? We'll break down all of the aspects so you can choose the best mortgage to buy your home.

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0:00 What you'll learn
0:35 Overview
2:48 Credit score requirements
4:14 Rates
5:16 Sponsor
5:55 Credit events
7:06 Debt-to-income ratios
8:21 Loan limits
8:52 Down payment and closing costs
10:41 Seller credits
11:09 Special requirements/features
16:00 Appraisal
17:23 Mortgage insurance
19:25 Seller perception
21:12 Monthly cost comparison
22:40 Total cost comparison
24:08 What I would choose
24:30 FHA vs Conventional

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Kyle Seagraves
NMLS# 1701021
Motto Mortgage Alliance
8900 N. Dixie Dr.
Dayton, OH 45414
Equal Housing Opportunity

[amandajones]

Took your advise on this and went for a place a little outside the main suburbs. Just put in an offer for a place with a usda loan. The loan officer was able to pre-approve us for 2.25% interest, 0 down and lower monthly pymnt. I'm so excited. Can't wait to hear back! 😊 thanks for the info!!

[skywalker]

I went with usda on a new house built . 2.7 interest no down payment my builder payed the closing cost and they cut me a check at closing . The only thing got put into the loan was the usda program which was like 1k

People who I know that went with fha they end with a higher interest rate and owe money at closing

[sironeil-personalfinancere]

I Love the FHA loan. I used it to purchase my first property property (house hacking) in Brooklyn. I even created my YouTube channel to document the journey. Thanks for the gem Kyle!

[-_.Nameyourcatdog._-]

Seriously your great at explaining you should be a teacher. Thank you for your advice

[JimMorrisen]

Great Information. Thank you very much for your dedication and compromise to the public for communicating things clear and factual.

[DanielDaniel]

Very informative. I live in a highly competitive housing market and am being pushed out to more rural areas as a 1st time home shopper which unlocks the ability to use the USDA. Makes for a very exciting prospect of owning a house which I never thought possible

[chinokhalifa]

Just turned 20 3 accounts open and 740 score never late payments. You are god sent from haven Kyle. Thank you so much will definitely look into an fha loan in the Chicago area!

[phyllisgovia]

Thank you so much! I learned more on this video than any other I have viewed!

[honey.badger]

Very informative comparison! Thank you!

I think I qualify for usda direct but my gripe with it is the many restrictions regarding mandatory reporting of changes in household income and no income producing activity allowed. If ever i'm in a dire situation i'd like to house hack and rent rooms out or airbnb. That would be a last resort to prevent defaulting on the mortage. I'd also like the freedom to add an adu. If someone on a usda loan becomes disabled and can't work anymore, what can they do quickly come up with payments to not default? This is why i'm leaning towards fha. It may not be as cost efficient as usda but at least there's less rules on your life and more flexibility to overcompensate for down situations bc life is unpredictable.

[ultrapink]

Hello "sweet and spicy people LOL I like that one

[myvideotodolist]

Such a ease the way your present "flat" yet valuable materials. Gifted educator and presenter! Thank you once again. Is Credible your business?

[karlanunez]

For USDA, what are the requirements for continuous employment? I was unemployed for 4 months due to covid but have been employed for the last 5 months.

[Truevoice]

I feel so hopeful now that I will but my dream home soon. I’m so happy your channel popped up on my YouTube feed. I understand so much better about different types of home mortgage loan now. You should teach real estate courses :-). Thank you for being so thorough and informative.

[karcampbell]

Thank you kyle for this Fantastic information, Just what i was looking for. Im a health professional whose currently building my credit, and Im looking to purchase hopefully USDA first time 2021, but yea sure, id take FHA.I loved your HUD video as well.

[NYCAppl]

This was an excellent analysis! I watched your USDA video yesterday and I found it to be very easy to understand and easy to follow because of how you organized and presented the information. Bonus points for having a voice and overall spirit that is really humble and calming which makes it easy to digest the heart of the message. Thanks for sharing your knowledge and expertise. It's so insightful especially to a lay person 😊

[MaroArmoni]

Love this channel 😍 So glad I found it, extremely informative. Plus your voice is very soothing and easy on the ears 🙏

[Tosh.Oh]

This is exactly what I needed! Thanks.

[ashleigh]

Flawless video! Thank you! Keep up the awesome work.

[PhiferCooksJR]

Thank you much. I learned so much. I will be watching your other videos as well.

[joneslt]

This is gold! excellent information, thoroughly explained. Thank you!