FHA & USDA loans

In the nicest way possible, Google exactly what you asked and determine if you should be concerned about either loan type. These are generally given to less qualified buyers, they're backed by the government, and have stipulations that may not apply to you.

I am guessing you may be able to get better rates from other companies if you are capable of putting 20%+ down and call around.

quote:

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Not able to put 20% down.

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my first house was an FHA loan...2% down, 11% interest ( ) and monthly PMI. there wasnt anything particularly complicated about the loan, i was a broke young husband and father, with low income so i qualified. i was able to save money to pay down on it and get to 20% equity so i got the PMI dropped

if you are within the income requirements theres no reason not to apply

USDA / rural development loans are (unless things have changed) in effect no money down because you can roll the 2-3% down into the financing.

Upside to this is that alot of buyers actually walk away from closing with a check if the deal is set up right, downside obviously is you immediately owe a few thousand more than the purchase price.

And of course the property itself has to qualify for RD loans. If you're shopping in an area where properties qualify for RD loans I'd definitely consider it if you plan on staying in the house at least 5 years.

USDA is what I've heard recommended for rural property that Fannie/Freddie and FHA won't touch. But I don't know anything else about how they work.