Buying a house is one of the most important goals in life for most people. Making that dream come true doesn’t necessarily require a high income since there are government-backed programs designed to help people to buy their own home. Two of the most popular options are the USDA Home Loan and FHA Loan and both have excellent benefits, but they are very different from each other.  The primary difference between FHA and USDA Loans are who is eligible for the programs. The USDA Home Loan is a U.S. Department of Agriculture Program that focuses on homes in some rural regions, but not necessarily a farm. Federal Housing Administration (FHA), is part of U.S. Department of Housing and Urban Development (HUD) and is very popular among first-time homebuyers. In this case, the borrower has to pay for mortgage insurance that will protect the lender if the borrower is unable to pay the loan.  Another difference is that while USDA Loans offer 100-percent financing and doesn’t require an initial payment, the rural development loan requires at least a downpayment of 3.5 percent.