Decid(ing) between an FHA or USDA mortgage can be overwhelming. Knowing which one is right for you can be difficult, but with some careful consideration, you can make the choice that fits your needs! (It) is important to understand the differences between the two programs so you don't end up paying too much in fees or interest.

The FHA program requires a smaller down payment than USDA loans and offers more lenient income requirements. That said, borrowers must still show proof of steady income and may have a higher debt-to-income ratio than with a USDA loan. In addition, it also typically carries a higher interest rate as well as monthly mortgage insurance premiums.

Conversely, USDA loans offer no required down payment and have lower credit score requirements than FHA mortgages. They are only available in rural areas designated by the U.S Department of Agriculture and require applicants to meet certain household income guidelines. However, an upfront fee of 1% plus additional annual fees must be paid throughout the lifetime of the loan - this can add significantly to its cost overall.
Furthermore, closing costs for both types of mortgages tend to be about equal; however, lenders may waive them for FHA loans if their credit score is high enough.
Interestingly though, neither type has any prepayment penalties so borrowers can choose to pay off either loan early without incurring extra costs! All in all, deciding between an FHA or USDA mortgage comes down to personal preference as both have advantages and disadvantages depending on individual circumstances. Ultimately though, it's best to weigh your options carefully and pick one that provides long-term value!