Which mortgage loan is better: FHA or Rural Development's Guaranteed Home loan?
Our objective - To use the least amount of money up front as possible, and maintain a total housing payment of less than $780 a month. (Interest rates quoted range from 5.125% to 5.5% & Taxes = $600yr & Home Ins. = $595yr)
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 purchase price -
*Higher Closing costs - Guaranteed loan fee for lenders to process loan is 2% of the total purchase price & lenders pass this fee to the buyers at closing
Any help with this is greatly appreciated! =)