Is my broker telling the truth?

Tips and Deals Forums Home Mortgage Is my broker telling the truth?

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      My broker seemed like he was trying to scare me away from USDA. I dont know why he would want to do so, but I told him the only reason we wanted USDA was because the area we were moving was eligible, and the 0% down was just icing on the cake.
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      He started off by saying that USDA is VERY slow, and warning me it can cause issues with sellers waiting on USDA to process everything. I said this was fine to us, as we are in no rush, and would like to let the sellers know when we make an offer that it is USDA (he said talk to the realtor about that) in hopes that they will understand it is a little slower and not get upset with the process.
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      Then he said that with*USDA the govt*could kick you out at the drop of a hat. If you missed one payment they could come in and pretty much do as they please. If you make a late payment by accident they will jack up your rate, and you have to keep track of all that live there and account for everyones income etc.
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      Im even ok with this, as our savings is enough to cover all bills if we both lost our jobs for six months, also when it comes to losing your house, we always have family to lean on and we try to be as prepared as possible. I dont ever anticipate a later payment either, but you never know… automatic payment screw up, lost check in the mail, etc. anything can happen.
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      So USDA borrowers… Is this true? Should I just go FHA like he is suggesting and just avoid it? Im a few months away from the pre-approval process and want to make sure Im doing whats best for us. We can do an FHA. Like I said, the 0% was just icing on the cake, but 3.5% down is fine with us as well if its a better option.
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      Thanks in advance!

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