Peaches, Home Buyer in Titusville, FL

is a usda loan better than a fha loan, and why?

Asked by Peaches, Titusville, FL Wed Oct 19, 2011

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5
Peaches

You have been posting a few questions about having a usda loan for $70,000, help with closing on a loan and now this one which loan is best. You have received different answer, it truly sounds like you need to sit down with someone in person, and ask your question and let them go over what is best for you.

Again if you already have been working with an agent then it is best to sit down with him/her and ask these questions and others. If you are not getting answers or unhappy with that agent, then you may call another.

I would be happy to sit down with you and talk to you about the whole process of buying a home.. Please give me a call and I will help you.. 321.536.3208

Lisa Mosier
Coldwell Banker Coast
1 vote Thank Flag Link Wed Oct 19, 2011
USDA loans are no down payment loans, the location of the home you intend to buy and your income and qualifications are the deciding factors, there are several areas in close proximity to Titusville that are located in USDA loan communities. Give me a call or send me an email with any questions you may have about this.
0 votes Thank Flag Link Thu Dec 20, 2012
USDA Loans have a 0% down. FHA 3.5%
0 votes Thank Flag Link Fri Apr 20, 2012
See your lender Peaches, all of your three questions are related to lending and closing, and it is beginning to worry me that you don't yet have a handle on how to START! Go to a lender, get a pre-qual, and ask questions. That will take less time and be more productive.
Good Luck
0 votes Thank Flag Link Thu Oct 20, 2011
USDA Rural Development (RD) has two versions, a "Direct" program which is available to people who fall within the "low income" eligibility limits and the mortgage application is made directly to USDA, and the "Guaranteed" version which is available to people who fall within the "moderate income" eligibility limits. The properties also have to be in an eligible area. With the Guaranteed version, USDA charges a 2% guarantee fee (similar to FHA's upfront mortgage insurance of 1%), and USDA charges an annual fee equal to .3% (similar to FHA's annual mortgage insurance which is either 1.1% or 1.15% per year on a loan term longer than 15 years) which can save a considerable amount each month. Both the income limits & eligible areas can be found at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

The USDA RD mortgage is a "loan of last resort", meaning if you can't qualify for FHA or conventional they then want you to try USDA. The reason they say this may be for many reasons, but the primary reason I believe is that USDA's funds are limited so if everyone used USDA vs. FHA or conventional then the people who truly need USDA or couldn't buy a home wouldn't have the option unless the fiscal year starts over. They don't require you furnish an FHA or conventional loan denial in order to obtain USDA RD financing, but from what I've seen it means if you have 20% to put down & decent credit then you won't be able to get USDA financing.
0 votes Thank Flag Link Thu Oct 20, 2011
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