WHAT’S THE DIFFERENCE BETWEEN A "USDA" & "VHDA" LOAN?

[Anonymous]

I'm looking to get either a FHA or USDA loan. I am looking on bank sites that are suppose to be approved lenders for USDA but all I am finding are VHDA loans. What's the difference?

[BrianB_The_Loan_Professor]

VHDA is a Virginai loan program - sorry dont know the details of it

FHA and USDA are very similar with just a few key differences

FHA 3.5% down USDA No Down

FHA Has 1.75% up front MIP USDA 2% funding fee (both can be financed)

FHA has a .55% Monthly MIP - USDA has none

FHA Has regional loan limits - USDA Has regional household income limits (115% of the median income for the area)

FHA has no restriction to location of home - USDA Must be in a rural eligible area

FHA allows multi unit USDA does not (Must be owner occupied)

FHA will not count deferred student loans USDA WILL

In my opinion if you can get a USDA loan it is superior to FHA - the rates are anout the same and the DTI limits very similar

Good Luck

B