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tdavi48 
LSU Fan
baton rouge
Member since Mar 2012
351 posts
| FHA loan and Rural Development (Posted on 2/7/13 at 9:11 am)
I live in Baton Rouge and I will be looking to buy a house at the end of this year. This will be my first house, so I am looking at getting 100% financing. What are the differences between these two loans and how much would I still have to come out of pocket, and can I buy in Baton Rouge or will it have to be on the outskirts like in prarieville area?(which im fine with)
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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4493 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 9:24 am to tdavi48)
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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bryso 
Clemson Fan
The Real Death Valley
Member since Dec 2006
26808 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 9:25 am to tdavi48)
quote:
This will be my first house, so I am looking at getting 100% financing
godbless america
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tdavi48
LSU Fan
baton rouge
Member since Mar 2012
351 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 9:49 am to bryso)
quote:
godbless america
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!
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tdavi48
LSU Fan
baton rouge
Member since Mar 2012
351 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:02 am to tigeraddict)
quote:
tigeraddict
When you say income requirement $74k/year for family size 1-4 does that mean we have to be under that or over that amount?
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LSU316
LSU Fan
Frog City Baby!!!
Member since Nov 2007
9474 posts
 Online
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:11 am to tdavi48)
Under bro.
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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
93 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:41 am to tdavi48)
in a family of 1 to 4, max combined income is $74,750, but if you do have kids, rural development gives deductions per kid,
central, zachary is eligible for rural development too, 
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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
93 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:46 am to tdavi48)
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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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4493 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:49 am to tdavi48)
quote:
hen you say income requirement $74k/year for family size 1-4 does that mean we have to be under that or over that amount?
yes if you make more that this you cannot get RD
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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26808 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:51 am to tdavi48)
quote:
tdavi48
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
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BigAppleTiger
LSU Fan
New York City
Member since Dec 2008
5295 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 10:54 am to tigeraddict)
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).
This post was edited on 2/7 at 10:55 am
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tdavi48
LSU Fan
baton rouge
Member since Mar 2012
351 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 11:08 am to bryso)
quote:
tdavi48
Yes the VP at my bank is one of my good friends. But I think with the 80/10/10 loan you still have to have 10% down
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tdavi48
LSU Fan
baton rouge
Member since Mar 2012
351 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 11:10 am to lsu tigerdog)
quote:
lsu tigerdog
Yes, but then you are limited on where you can live and what areas these loans are applicable at.
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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
26808 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 11:48 am to bryso)
80/10/10 wasn't the right term.. sorry...
check with your bank they might have something they can offer you... I thought i knew a guy that did something like this and put very little down... but i might be way off
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seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
4090 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 11:50 am to LSU316)
What about an 80/15/5?
This post was edited on 2/7 at 11:51 am
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LSUSUPERSTAR
LSU Fan
Arlington, TX
Member since Jan 2005
8752 posts
Online
| re: FHA loan and Rural Development (Posted on 2/7/13 at 4:24 pm to tdavi48)
Not trying to be a dick, but you shouldn't be buying a house. Get married, save some money and then buy a house. If you have good credit like you say, you should have no problem getting a conventional loan. They will give you one with as little as 5% down. The PMI rate is much lower and can be removed once you hit 80% LTV.
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LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
8713 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 5:46 pm to LSUSUPERSTAR)
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.
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wegotdatwood 
Arkansas Fan
Member since Aug 2009
14166 posts
| re: FHA loan and Rural Development (Posted on 2/7/13 at 6:15 pm to tdavi48)
VA loans bitches. 
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bojabu
Member since Sep 2010
1275 posts
| re: FHA loan and Rural Development (Posted on 2/10/13 at 4:33 am to wegotdatwood)
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.
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