If you're a veteran, start with VA. Otherwise, USDA is the best zero-down loan when the home is in an eligible area and your income fits — cheaper fees than FHA, below-market rates. Off-map or over the income cap? FHA. Strong credit with a down payment? Conventional. This page compares them all. For the USDA-vs-FHA depth, see Pros & Cons.
The master comparison
| Program | Min down | Monthly MI | Limits | Best for |
|---|---|---|---|---|
| USDA | $0 | 0.35% (low) | Area + income | Zero-down, eligible areas |
| FHA | 3.5% | ~0.55% (often life) | None | Lower credit, small down |
| Conventional | 3% | PMI until 20% | None | Good credit, down payment |
| VA | $0 | None | Veterans only | Eligible veterans |
Figures are 2026 general guidance, not an offer. Lender overlays and program details vary.
USDA head-to-head
USDA vs FHA
The most common USDA comparison. USDA wins on cost — $0 down vs 3.5%, and a 0.35% annual fee vs FHA's ~0.55%. But FHA has no area or income limits, so it's the backup when you're off-map or over the USDA cap. Simple rule: USDA if you qualify, FHA if you don't.
USDA vs Conventional
USDA beats conventional for low-to-moderate income buyers who want zero down. Conventional pulls ahead with strong credit and a down payment big enough to cancel PMI at 20% — and it has no area or income limits.
USDA vs VA
Both offer $0 down. For eligible veterans, VA usually wins — no monthly MI and no area/income limits. USDA is the top zero-down option for non-veterans in eligible areas.
A simple decision framework
Work down this ladder and stop at the first "yes":
Are you an eligible veteran?
→ VA loan. $0 down, no monthly MI. Usually the winner.
Is the home in an eligible area, and is your income under the cap?
→ USDA. The cheapest zero-down loan for non-veterans.
Is your credit strong (roughly 680+) with some down payment?
→ Conventional. PMI cancels at 20%.
Lower credit, small down, or off-map / over the USDA cap?
→ FHA. The flexible catch-all.
Comparison FAQs
Is USDA better than FHA?
If you qualify, usually — cheaper fees, zero down. FHA when you're off-map or over income. See FHA.
USDA or conventional?
USDA for zero-down within the rules; conventional for strong credit with a down payment.
USDA or VA?
VA for eligible veterans (no MI, no limits). USDA is the best zero-down for non-veterans.
Which zero-down loan is best?
VA if you're a veteran; USDA otherwise, in eligible areas within income limits.
How do I choose?
Veteran → VA. Else USDA (if eligible), conventional (good credit), or FHA. A broker matches you fast.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.