Super Contributor
ShanetheMortgageMan
Posts: 7,753
Registered: ‎09-28-2007
Re: Evaluating Conventional vs. FHA

The primary advantage of the Guaranteed loan is you go through a mortgage lender, which is quicker than going directly to USDA, that's about it.

 

The advantages of the Direct program is that they have a construction loan program, it's easier to get financing on manufactured homes, they have a payment subsidy option if your debt to income ratio is too high (has tax implications though), there is no Guarantee fee, and there is no monthly USDA fee either.

 

Interest rates should be the same for both versions, in the 4.5% to 4.75% range.