Which one is the right one? First of all, let’s look at the definition of each.
FHA mortgage loans are home loans backed by the Federal Housing Administration through mortgage insurance. You pay 3.5% of the purchase price of the home on your own as the down payment. The other 96.5% of the price is covered by your mortgage. FHA loans also come with monthly mortgage insurance. However, these premiums are often lower than other mortgage loans, so they’re optimal for first time home buyers.
It’s not much different than getting an FHA loan. Like FHA, a government agency sponsors the program, but some local lenders* handle 100% of the transaction. That means your lender does everything from taking your application to issuing the final approval. This zero-down, 100% financing home loan is sponsored by the United States Department of Agriculture to promote homeownership in less-dense communities across the U.S.
You can always call and request a free Mortgage Consultation at any of these recommended Mortgage Loan institutions: First Bank & Trust, BankStar, Wells Fargo, Dacotah Bank, Dakotaland Federal Credit Union, Fairway Mortgage and Meta Bank. Some of these are located in Volga, White, Arlington and Brookings South Dakota.
Comparing the Two
No down payment - Rural Development
Low down payment - FHA loan
Location freedom - FHA loan
Geographical requirement - Rural Development
Remodeling financing option - FHA loan
Income limitation - Rural Development
Home price limitation - FHA loan
On that note, are you looking to buy a home in eastern South Dakota in Brookings, Volga, Aurora? I’m here to help! I have the key to your real estate needs. Visit BrookingsHousesForSale.com for more details!
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