Comments on: USDA Rural Home Loan or FHA Home Loan – Which Has The Lowest Cost?

By: pauldunn

pauldunn — Fri, 08 Jan 2010 13:49:35 +0000

Trevor - That will depend on the lender you go through to get the USDA Loan. A few lenders will allow you to set up an escrow repair account at closing to do the repairs prior to closing. Although USDA allows that, I do not know of any lenders willing to do that at this time because the USDA Guarantee cannot be issued until all repairs are made...

By: Trevor Marsh

Trevor Marsh — Thu, 07 Jan 2010 03:50:19 +0000

Im just wondering what all has to be done to get a house that needs some work under the RHL? I cant find the info. It states like it has to be livable and such but you can use the money for fixin things so I dno cause I found a perfect house but dno if it will work. It is in the right area but needs some work. I need help.

By: pauldunn

pauldunn — Mon, 06 Oct 2008 13:57:11 +0000

The conventional rates should always be higher than FHA or USDA. Part of the reason is that Conventional has risk based pricing adjustments that could make the conventional rate up to a full 1.375% or more higher than either FHA or USDA on any given day.

For example with today’s pricing sheets a low 600 credit score buyer would pay 1.375% more for a conventional loan with a higher down payment and larger monthly payment than doing either FHA or USDA.

By: Jim

Jim — Mon, 06 Oct 2008 04:45:42 +0000

Interesting information. I was curious though why the conventional rate in your example is 7.00% and the rate you used for both the FHA and RHL were only 6.50%.

Normally wouldn’t you expect to see a higher rate for an FHA loan over a conventional loan with low downpayments?

Thanks
Jim

By: Paul Dunn

Paul Dunn — Tue, 19 Aug 2008 17:32:08 +0000

Thanks guys, I really wanted to point out to the general public that the USDA Guaranteed Rural Development home loan is the most cost effective mortgage money can buy for those who qualify.

By: Sean Rafferty, CMPS

Sean Rafferty, CMPS — Wed, 13 Aug 2008 13:27:22 +0000

Geez Paul, makes me want to exit Silicon Valley and head for the cow land! Nice niche.