Are interest rates for USDA loans lower than conforming loans?

Yes. they do have lower rates, but they also have mandatory upfront and monthly mortgage insurance and it's non refundable and there for the life of the loan.. the only way to remove it would be to refinance.. the better option would be conventional financing.. with conventional financing, there is no "Upfront" MI required, and the monthly MI can be removed once you have paid for 2 years and once you have reached 20% or more in equity (supported by an appraisal you pay for). Plus, you don't have to refinance to do it.. The benefit of USDA is that you don't need any down payment.. with conventional, you will need a minimum of 3% to 5% depending on whether or not your a first time home buyer.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Typically yes the rates are lower. However FHA and USDA have a monthly and upfront mortgage insurance premium. The monthly will never fall off the loan so in the long run a Conventional loan might save you more money. It would be best to look at all the options with a local lender.