USDA vs FHA calculator
Run the same home through both loans. USDA needs $0 down and charges lower fees; FHA needs 3.5% down and higher mortgage insurance, but works anywhere. This shows the monthly payment, the cash you need at closing, and the five-year difference. You enter the rate.
Reading the comparison
Both columns use the same price, rate, and term so the difference is only the loan program. USDA finances the price plus its 1% fee at $0 down. FHA takes 3.5% down, so its loan is smaller, but its upfront and monthly insurance are higher. The cash-to-close line is the number most buyers feel first: USDA keeps that money in your pocket. Over five years, the down-payment savings plus the lower fees usually put USDA ahead, when the home and your income qualify.
Common questions
Is USDA cheaper than FHA?
For a buyer who qualifies, usually yes. USDA needs no down payment versus FHA's 3.5%, and its fees are lower (1.0% upfront and 0.35% annual against FHA's 1.75% and about 0.55%). The main catch is that USDA only works in eligible areas and has a household income cap.
When is FHA the better choice?
FHA wins when the home is outside the USDA-eligible map or your household income is over the USDA limit, since FHA has neither restriction. FHA also reaches lower credit scores, qualifying at 580 with 3.5% down.
Can I switch from FHA to USDA later?
Not by refinancing. USDA only refinances existing USDA loans, so the choice between the two is made at purchase, not switched into afterward.