Rural vs Conventional | TigerDroppings.com

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bwallcubfan
LSU Fan
Calhoun
Member since Sep 2007
21911 posts

Rural vs Conventional


First time buyer here. Trying to decide which one to go with.

I'm getting married in February. The only way we can get Rural is if I'm the only borrower and leave off the fiance. Together we'd be over the threshold.

We aren't putting 20% down...probably around 10%. This is for a 30 year fixed.

Which one should I go with? What's the pros and cons? Are the closing costs cheaper with one or the other? TIA







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Croacka
UNLV Fan
Denham Springs
Member since Dec 2008
50842 posts

re: Rural vs Conventional


Rural by a long shot

No monthly PMI, but I've heard they are way backed up on processing them






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bwallcubfan
LSU Fan
Calhoun
Member since Sep 2007
21911 posts

re: Rural vs Conventional


Are closing costs different for each loan? Or does that not change?





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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1958 posts

re: Rural vs Conventional


if you have a strong credit score conventional is the way to go, RD loans have monthly pmi and upfront PMI you finance in the loan. So if your score is over 700 conventional will be a better loan for you.





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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
123 posts

re: Rural vs Conventional


rural development is the way to go, but there is a small pmi that's added to the total monthly payment, its very small.
for closing cost, it can vary depending where you go.call me if you want, i'm a broker here in baton rouge, 225-291-7901 x 224,i can give more detail abt rural development program;no fee's on our end.
if your income is below $74,750 you're good to go






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mglsu21
LSU Fan
Prairieville
Member since Jun 2012
575 posts

re: Rural vs Conventional


quote:

No monthly PMI


It changed about a year ago...there is now monthly PMI on RD.

My RD loan of $175k has a monthly PMI of $58. If I would've gone FHA it would've been around $175/month PMI. Not sure what conventional would've been.

In terms of PMI then yes Rural by a long shot. As of a month ago Rural also beat conventional and FHA in rates.






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bwallcubfan
LSU Fan
Calhoun
Member since Sep 2007
21911 posts

re: Rural vs Conventional


quote:

So if your score is over 700 conventional will be a better loan for you.


I'm well above that...but how exactly would conventional be better?



This post was edited on 6/25 at 2:08 pm


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