USDA or FHA? Do not know the terms for USDA

[Ryan L Grinstead]

I was pre-approved for a FHA loan up to 160,000 by a local bank. The loan officer said they could switch it to USDA if I want to but I am not familiar with it and how it would limit my buying options. For reference I am looking to do house hacking with this loan. USDAs appeal is that it is no money down. I have little cash would likely have to borrow from family to get 3.5% and I would prefer not to do that because of tight financials on their part.

[Sung Park]

Ryan L Grinstead fha and usda are two different loan programs administered by different govt agencies. My understanding is that usda is meant for rural areas as the program defines it where as FHA does not have geographic restrictions. I’m not sure if usda can be used for 2-4 unit properties for use as House hacking. Regardless, googling it might be your best course of action.