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.