You are getting downpayment assistance. That's why the rate is so high
Can't you come up with 3% to 5% down and go that rout? USDA is stricter on DTI as well.
USDA's dti is 41%. My score is the same and was just locked at 4.675% for USDA. 0% down. You can ask for closing costs from the seller. We asked for up to $4000 and will need to bring about $900 to closing. We looked into FHA with down payment assistance and it was well over 5% so we didnt do that. If you have a lower income, USDA might be a good option
How much where you approved for w/ your USDA loan? Me and my wife are considering this but worried about what we would be offered. I think our DTI is 13%.. we would be right at the 78,200 combined income limit.