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| Ascension Parish Rural Development Question Posted by bigbowe80 I am about to build a house in Keystone of Galvez. The house will not be ready until January. I know all about the Rural Development mortgage financing in this area and the word on the street is they will be ending this in northern Ascension/Prairieville at the end of September.  on 7/19 at 10:08 amThe way I understand it even though we have a purchase agreement the financing will not be locked in officially until January when we close and if the Rural Devlopment really does expire in September I will not be able to take advantage of it. I am still in great shape even if I am forced to go with a FHA loan as for as downpayment and all that stuff, I just have several questions about the Rural Development stuff. Does anybody in the know who know's where Keystone at Galvez neighborhood is think this neighborhood will really be taken off RD in September? Different people I have talked to think it will not be affected and only extreme Southeast BR and Northern Ascension will be taken off then. How beneficial is RD vs. a conventional FHA loan anyway? Is it really that big a deal in the first place? I know the 100% financing is nice as well as not having to pay the PMI every month but from what my finance guy has explained to me, this is not a huge issue. Thanks in advance. This post was edited on 7/19 at 10:09 am Reply • Back to Top |
| every year RD does this. its the end of the fiscal year so they either run out of money or they redo their boundries. FHA home loans are ugly compared to RD. RD know has PMI monthly on thier home loans. FHA monthly PMI is 3times higher than RD. If you have a high credit score(over 740) i would put 5% down and go conventional the monthly PMI is much lower conventionaly than FHA. Reply • Back to Top |
quote: RD you now pay PMI on. But on a $130K house I am paying $33/month on it. That ain't bad. 3.75% for 30 years fixed rate at 100% financing with zero down payment & some seller concessions on my new construction house? RD shat all over FHA. I would have had to have brought $9K to close and payed 50 basis points higher with MI. The quote differential was: w/RD: $695 PITI/month @ 3.75% w/FHA: $894 PITI/month @ 4.125% No contest. Reply • Back to Top |
| Yeah I was running some figures the other day between $165k-$200k mortgage (can't remember exact amount because i ran so many figures), but the RD PMI was like $45/month and the FHA PMI was $195/month. No brainer right there. Reply • Back to Top |
quote:How do you find information on where they are "re-zoning"? Reply • Back to Top |
quote: That's exactly what I am worried about. The RD is set to run out OCT. 1 unless they extend the deadline in northern Ascension and nobody can give me a streight up answer if they think it will in fact be extended (cause nobody really knows). The neighborhood I wanna buy in has some "ok" houses that are almost finished that would ready to move in Sep. 15 so I would be fine there. Or I can wait and build one from scratch that we can pick out everything just like we would like that will be ready January. So that's the rub if I risk losing the opportunity for RD and just how big is it if I do miss RD? Another thing that suxs is apparently you can't lock in RD until you are closing on the house days before the actual move in date so it doesn't matter if you have a purchase agreement in (say now being July), if RD expires apparently you would still miss it. This post was edited on 7/19 at 3:51 pm Reply • Back to Top |
quote: Another option is the single pay mortgage insurance. You can pay the premium, our use premium pricing (go with a slightly higher rate) and let premium pay the single mortgage insurance premium. Reply • Back to Top • Refresh |
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