FHA loan and Rural Development

FHA you have to put 3.5% down, there is no 100% financing here, high PMI that doesn't go away until you hit 78% value of house left on loan.

RD is 100% financing, and much lower PMI (tho PMI is life of the loan not 22% value)

RD has income requirement. family size 1-4 like $74k/yr and family size 5-8 is like $94k/yr

Also, RD loan is only available in areas designated to qualify, like the Hoo Shoo Too area in BR

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godbless america

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I get what your saying, but at the same time I have excellent credit, never missed a payment on anything and have a good bit of cash saved up. But within the next year I will also be getting engaged, buying a new house which means a lot of other expenses that comes with it and then the wedding. So I would like to keep a little extra cash in my pocket!

Under bro.

dont go FHA, if you qualify for the 100% program, you save $$$ on the down payment, much lower PMI plus on the 100% program you can literally come to the closing table with NO out of pocket expense.
But be prepared, rural development is very behind, underwriting is quick process, abt 2.5 weeks, but when you lock a rate, must be for min 60 days,

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tdavi48

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do you have a good relationship with a local bank? a lot of them will do an 80/10/10 loan.. .which basically means they loan the money so u can get the FHA terms without having to pay PMI.... that way the money u would be paying on PMI goes to equity on the house....

or something like that

FHA changes to go into effect on April 1, 2013:

1. Annual MIP increasing to 1.35%

2. Annual MIP can never be removed regardless of LTV. Effective on new FHA loans starting June 1, 2013. Right now it can be removed after 5 years and 80% LTV. This is going to increased monthly payments greatly. To put it into perspective in 2010 the annual MIP was .55% On a $200,000 home in 2010 MIP would have been about 91 dollars monthly. Under new rules in April about 225 dollars. It has risen incrementally since 2010. Get in there now at 1.25% and save about 250 a year(relative to 200k home).

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lsu tigerdog

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Yes, but then you are limited on where you can live and what areas these loans are applicable at.

What about an 80/15/5?

If I was buying a house, and qualified for a RD loan I sure as hell would go that route, and I wouldn't put $1 down.

Elope and get married on a beach. Problem solved.

I will say this. I just sold my home and bought another. My buyer had an RD loan, and it assfricked everything. Closing was pushed back three different times, which was five hours of phone calls and emails each time. We ended up closing 60+ days later due to waiting for the RD loan to come back. By the time it was over, our sellers hated us, we hated our buyer's bank, and the title company hated us all. It was awesome.