Here is a great USDA "apples to apples" comparison.  A Guaranteed USDA 100% loan offers the home buyer the most affordable payment, less out of pocket cost, and usually the most competitive 30 year fixed rate in the market.

This 100% Guaranteed loan payment includes the 2% funding fee that is rolled into the loan.  The following is based on a $175,000 loan at a 6% interest rate.

• No PMI loans at 8% with a 30 Year term = $1284
• Freddie 100 = $1189
• My Community = $1135
• 5% down conventional ($8750 + MI) = $1105
• FHA 3% down ($5250 + UFMIP + MI) = $1105
• 40 year loan + MI = $1103
• Flex 97 ($5250 + MI) = $1091
• 80/20, 80: 6% 30 yr loan 20: 7.5% 30 yr loan = $1084  (hard to get anymore)
• 100% USDA plus 2% Fee with NO MI = $1070

Many of the products from above will not have a comparable fixed rate.  They will be higher. 

Have a nice day.

Justin Messer

We provide USDA home loans in Georgia, Florida, Alabama, Tennessee, and North and South Carolina.