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Home/FHA vs USDA Loan
FHA vs USDA Loan

FHA vs. USDA loans

USDA offers 0% down but only in eligible areas with income limits. FHA works anywhere with no income cap. Here's how to choose for your Florida home.

0% down (USDA)Location limitsIncome capsMortgage insurance

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FHA vs. USDA loans

USDA loans offer 0% down but only in eligible rural and suburban areas and with income limits. FHA works anywhere with no income cap. Here's the comparison for Florida buyers.

FeatureFHA LoanUSDA Loan
Down payment3.5%0% down
LocationAnywhere in FloridaUSDA-eligible areas only
Income limitsNoneHousehold income caps apply
Mortgage insuranceMIP (1.75% + ~0.55%/yr)Lower guarantee fee + annual fee
Credit580+ typicalTypically ~640

Which should you choose?

If you're buying in a USDA-eligible Florida area and your income is within limits, USDA's 0% down is appealing. If you're in a city, exceed the income limits, or want flexibility, FHA is the better fit. Many Florida metros aren't USDA-eligible, which is why FHA is so widely used here.

Questions & Answers

Frequently asked questions

Is a USDA loan better than FHA?+
If you're buying in a USDA-eligible Florida area and meet the income limits, USDA's 0% down is attractive. Otherwise FHA is more flexible — it works anywhere with no income cap.
How do I know if a Florida property is USDA-eligible?+
USDA eligibility is based on the property's location (designated rural/suburban areas) and your household income. We can check a specific address and your eligibility.
Does USDA have income limits?+
Yes. USDA loans have household income caps that vary by area and family size. FHA has no income limits.
Which has cheaper mortgage insurance?+
USDA's guarantee and annual fees are generally lower than FHA's MIP, but USDA is restricted by location and income, so it's not available to everyone.
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