The R.D Loan

FHA vs RD Loan

FHA :

	3% average down payment required
	1.5 % Up Front Mortgage Insurance Premium rolled into the loan
	Reduced monthly mortgage insurance premium added to payment
	Purchase price limits apply
	No income limits restrictions
	Qualifying ratios of 31/ 43 may be exceeded with compensating factors
	Condominiums townhouses ,etc must be on approved FHA list
	All urban area are eligible
	No minimum credit score
	Seller concessions allowed up to 6%
	No payment penalties
	Temporary buy downs allowed ,quality at full note rate
	30 years fixed rates and ARMS available
	Not just for first time homebuyers
	Audited Financial required for broker participation
	Non –occupant co-borrowers allowed
	Refinance available
	Homebuyer education not required

RD LOAN :

	No down payment is required , up to 102% LTV
	2% one time guarantee fee may be rolled into the loan above the appraised value
	No monthly Mortgage insurance premium
	No Maximum purchase price limit
	Generous income limit of 115% area median income minus eligible deductions for dependents childcare ,etc in order to assist more buyers in qualifying
	Condominiums townhouses etc. are eligible if acceptable to Fannie ,Freddie ,FHA,HUD,OR VA
	Eligible rural area only ;more area qualify then u think
	No minimum credit score
	No limit to seller concessions
	No limit to gift & grand Funds
	No prepayments Penalties
	Temporary buy downs allowed qualify at the first year bought down rate
	Low income borrowers may finance a maximum of 2 discount points in order to permanently buy down their interest rate
	30 years fixed rates – no surprises. The payment they qualify for today is the payments they can budget in the future
	Not just for first time homebuyers
	No burdensome audits for brokers
	No Co-signors or non occupant co-borrowers allowed ,ratio waivers are available
	Refinance Opportunities are available to current Rural Development loan holders
	No RECAPTURE
	Homebuyer education not required