When you are purchasing a home you have several different financing options. Two of the most common and convenient choices are a USDA rural development loan and a conventional mortgage. But how do you know which loan is best for you? While both of these mortgages can achieve your goal of homeownership, one can be more advantageous than the other depending on your specific situation. Down payment requirements and private mortgage insurance can all play a major role in not only the loan type that you choose but how much ultimately pay each month and over the life of your mortgage. Let's take a closer look at the differences between a conventional loan and USDA rural development mortgage.