re: House purchase help requested

Again, not replying to any poster in particular.

I need to learn mortgage insurance...

If I dropped the price of the house a little bit, I can swing the 20% down payment and retain the security cash fund.

I have contacted my realtor friend, she confirmed what y'all are saying. Step 1 is to get pre-approved for a loan, that buyers will want to see that within 3 days of accepting an offer.

She listed 3 possible loans with 3 down payment options.

Rural Development with 0% DP.
FHA with 3.5% DP
Conventional with 20% DP

I'm assuming my lender will be the only person that can tell me what options I have after checking my finances...

I thought that I understood the seller paid the full 6% of split it between the two realtors. Thanks for confirming that, I feel confident she'll go in there with my best interest.


Eta: not a veteran.

The Dave Ramsey plan is the best way to go IMO:
1. Use his elp program to find a realtor in the area.
2. 20% down conventional loan (eliminates Pmi/scam)
3. 15 year (will also help w your rate)
4. Get setup in a biweekly payment program (this will result in an extra payment annually)
5. Attack the principal: make extra payments whenever u can.

Can anyone explain the drawback of the rural housing loan would be?

One of the addresses I like is eligible, and after playing with the income eligibility generator, I figured out my wage at the next job gives me eligibility.

I won't be eligible if they ask for a W2 though.

all of the info is much appreciated fellas.

The RD loan process is a pain in the arse. You will be asked for bank and pay statements every week through the 3 mounth process that it takes to get closed. Its a long drawn out process.
However. Its zero down and there is no pmi. Just a 3% up front fee that gets added to your mortgage. Also look into setting up bi-weekly payments and set it up so that you are paying 60 to 100 extra on each payment.

Realistically the first house you buy should only be for 5 years max while you make small improvements each year. Turn that equity after 5 into another place for 5. Repeat

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Can anyone explain the drawback of the rural housing loan would be?

One of the addresses I like is eligible, and after playing with the income eligibility generator, I figured out my wage at the next job gives me eligibility.

I won't be eligible if they ask for a W2 though.

all of the info is much appreciated fellas.

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In order to qualify for a RD loan

1) the house must be in a declared RD loan area. (for example in baton rouge, Hoo Shoo Too road areas from jefferson back towards the river on the right, and river to tiger bend on the left side of the road)

2) there are income restrictions as well. i think last i looked 0-4 person family was in the $70k range, and 5-8 person family was uppr $90s range

FHA will have PMI for the life of the loan, so will RD loans, but the monthly cost for RD is very low compared to FHA

USDA websie for RD loan info

Will be happy to answer and give guidance. Been in mortgagae since 1999.

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What kind of perks do you get with VA loans?
How much down should you put with VA?

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no more perks that I know of

that's what I wanted but it went conventional, w/20%
down

seems u got some experience in the real state bidness around here, y'all b alright

We just got approved for a VA loan. No money down and no PMI. I would say those are nice perks.

Thanks everyone for the advice. Y'all are giving me a lot of helpful info to consider.

To whoever said live beneath your means, that's exactly what I'm doing. I'm looking to get into the house with 20% down and have my mortgage + all house related bills <25% of income. I feel that's decent numbers for a first home.

I've got the area narrowed down, I sent a few listings to my realtor, and I'll be contacting the bank tomorrow to see what they need to set me up for pre-approval.

Thanks for the tip on buying before changing jobs, I'll actually still be receiving checks for another month or so from this company, and I'm taking a few months off before I begin the new job. I'm going to go ahead and begin the bank process tomorrow.

BTW, I'm getting out of an oilfield related career and going to a construction career.

Money < Family. I'm coming home, hopefully, literally.