My husband (29m) and I (28f) are in the market for buying our first home. We qualify for USDA, FHA, and conventional (5% down). My realtor has been showing us houses that qualify for each loan. So far, we have been in a contract with a USDA loan (0% down) on a home (bad inspection- we terminated). So now our realtor is showing us a home that we can purchase with conventional (5% down) and she mentioned we wouldn’t have to pay a funding fee (which is required with a USDA. I have done research on all of these types of loans, and I feel like USDA is the best option for my husband and I (cost wise).
My question is, what is your experience with these types of loans? If you also qualified for these loans, which one did you choose for the best financial outcome? Are conventional mortgage rates that much higher than USDA in today’s market?
I’m also working with a lender, but I thought I would ask Reddit and people who have been through this, as well!