Buying a Home USDA vs FHA
by Amber S.
Hello, I have a question regarding USDA vs. FHA home loans.
I am in the process of getting a home in the next month but was told I wouldn't be approved for a USDA program unless the home was under 100k and that if the home was over that amount I would have to go through FHA with a 3.5% down payment.
The down payment is difficult for me but in order to buy I have to come up with it.
Going into this I thought I would be eligible for a (no money down) program through USDA and I have gotten the run around so much from the mortgage broker that is working with me that something just doesn't feel right with what he is saying.
I make 31K a year and will be up to 34K at end of the year with my raise. My credit score is a 620. I was wondering if you could tell me if I am looking into this too much or does it sound odd to you? I have been researching it and the home I am buying is 115K and I have heard of streamline processing through USDA but am just not sure why I would have to go through FHA instead of USDA as I have never bought a home before.
I filed for bankruptcy back in 2011. But never owned a home and it was mainly because of medical bills. I have 35k in student loan debt as well right now and they are only including my income and not my husband's because his credit score is low and they said that with his score they couldn't add him to the loan so they are going off of just my income.
I am so confused and am only able to get the loan contingent upon my raise at end of August. Could you please give me some advice on this?
Thank you for your time!