Which mortgage loan is better: FHA or Rural Development’s Guaranteed Home loan?
My husband and I are buying a builders spec home in Lafayette, IN for 5,000. The home is in a new community that qualifies for USDA loans. We have been pre-approved for a FHA mortgage through Bank of America & a local mortgage broker. FHA was the mortgage we were plotting on taking until we found this house. Now we are torn between the two and are unsure on which one would benefit us now & in the long run.
Our objective – To use the least amount of money up front as possible, and maintain a total housing payment of less than 0 a month. (Interest rates quoted range from 5.125% to 5.5% & Taxes = 0yr & Home Ins. = 5yr)
I don’t know much about the loans offered by the USDA but what I have learned is…..
*No money needed for a down payment – 100% financing
*Manual Underwriting through approved lenders – It can take up too two weeks to be fully approved
*No Private Mortgage Insurance
*Closing costs can be added to mortgage as long as the home appraises higher than buy price –
*Higher Closing costs – Guaranteed loan fee for lenders to process loan is 2% of the total buy price & lenders pass this fee to the buyers at closing
Any help with this is greatly appreciated! =)
Thanks,
Bre
Related FHA and HUD Posts
- Florida FHA Loans, Florida FHA Mortgage, Florida FHA Lenders, 97% Financing
- Why Choose an FHA Loan
- Mortgage question. Please help!?
- Calculating New York Fha Refinance Benefits, Using Lender Tips and Tools
- Can a 1st appraisal be dispelled on an FHA mortgage or can the original appraiser withdraw it?
- Is it true that closing costs cannot be combined into an FHA loan?
- FHA Mortgage Interest Rates Information
- FHA Streamline Loan Requirements
- Mortgage down payment help?
- Do you have to pay mortgage insurance with the FHA 3.5% down payment loan?
- Will I be able to buy this short sale with an FHA loan? What will it cost?
- fha mortgage tradeline question?
- FHA Loan MIP is added to the loan amount and also appears in the closing cost?
- Where can i view a detailed list of FHA’s loan modification guideline online?
- first time home buyer, already pre approved using FHA for the loan,?
- How to decide between a conventional v/s FHA loan?
- If FHA mortgages are insured by the government why do some lenders still require / charge you for PMI?
- Fha Streamline Refinance Saves Money!
- Getting Good Mortgage Refinance Rates on Bad Credit
- Will overdrafts hurt me in applying for an FHA mortgage?
- Can income from renting out rooms help you qualify for a larger FHA mortgage?
- I’m thinking of having someone assume my FHA mortgage…..?
- Are 2 points for loan origination fee & loan discount normal on an FHA loan?
- Please help me decide between 2 mortgage loans.?
- Can an interest rate, once “locked in” be changed (lowered)?
- Is the 1.75% Mortgage Insurance Premium (FHA loan) up front payment tax deductible in the tax year its paid?
- What are the four elements of a mortgage payment?
- FHA revises ‘anti-flipping’ rule
- Salem and North Shore Massachusetts Real Estate Market: FHA …
- First Time Home Buyer Program, $8000 Tax Credit, Buy Foreclosures Cheap with FHA Mortgage
- FHA Mortgage Loans with Cash Out Refinancing
- Understanding the Advantages of Fha Refinance Loans
- First Time Home Buyer Tax Credit, FHA Loans, Low Mortgage Interest Rate Program
- 5 Rules for an Fha Streamline Refinance
- Fha Mortgage Rates Squeezed to the Brim
- Fha Refinance Rates North Carolina
- FHA Home Loans – How to qualify
- Lincoln Appraisal and Settlement Services Announces Continued 100% Compliance With FHA Appraisal Guidelines (PR Newswire via Yahoo! Finance)
- Why Are People Expecting The Us Government To Give Them Money For …
- Mortgage Approval For PMI
- Will It Be Difficult For Me To Get A Home Equity Loan? | FHA …
- When Will The Mortgage Interest Rates Sky Rocket Into The Double …
- Any In For Or Advice For Seniors On One Fixed Income Needing A …
- Is Laser Depilation An Option For Me? | FHA Mortgage Blog
- How Come 30 Year Mortgage Interest Rates Aren't Rising? | FHA …
- First Time Home Buyer's Assistance In Florida? | FHA Mortgage Blog
- How Can I Go About Obtaining A Reverse Mortgage? | FHA Mortgage Blog
- Who Is Really To Blame For This Economic Mess? | FHA Mortgage Blog
- 4 Little-Known Facts about FHA Mortgages – Financial Web
- Mortgage After Bankruptcy? | FHA Mortgage Blog
Tags:
amount of money,
amp,
bank of america,
closing costs,
FHA Mortgage,
General,
ins,
insurance,
interest rates,
lenders,
loan fee,
mortgage broker,
objective,
private mortgage insurance,
usda loans
Tags:
amount of money,
amp,
bank of america,
closing costs,
FHA Mortgage,
ins,
insurance,
interest rates,
lenders,
loan fee,
mortgage broker,
objective,
private mortgage insurance,
usda loans
This entry was posted
on Saturday, August 29th, 2009 at 12:08 pm and is filed under General.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Top incoming search terms for this post
Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development. ... Here are a few reasons why: On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by. the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200000. home with a $7000 down payment, the up-front mortgage insurance will increase by. $965. Up-front mortgage insurance is ...