The main downsides to a USDA Streamline are guarantee fees. These are upfront and annual, and they function similarly to mortgage insurance. Unlike conventional and certain Federal Housing Administration (FHA) loans, guarantee fees on USDA loans stick around for as long as you have the loan.
This contrasts with conventional loans where you don’t have to pay for mortgage insurance if you have 20% or more existing equity in your home. For this reason, a conventional loan can be more attractive, especially if you find yourself building higher equity amounts over time.