Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Mark Waterman from Great Western Bank. Today Mark explained the difference between the RD (Rural Development) 1st Time Home buyer vs. the RD Conventional Loan. Is one better than the other for you?. You can reach him at 605.627.0602 or Mark.Waterman@GreatWesternBank.com His office is located at 1302 6th St., Brookings SD 57006 or on the web at www.GreatWesternBank.com
RD 1st Time Homebuyer vs. RD Conventional
- Hey, good morning everybody, Shane here from the Brookings Home Team powered by Century 21. It is Memorial Day and, obviously this is being recorded prior to that, but I hope everybody has a safe and happy Memorial Day. Mark has agreed to jump on here and talk a little bit about a Monday morning mortgage tip. Mark from Great Western, thank you for joining me today and what do you have?
- Yeah, no I appreciate it, thank you. I was gonna talk to, talk to you today about the difference between rural developments and a first-time homebuyer rural development. Both programs better known as RD. So with the Rural Development Program, whether you do the first-time homebuyer or not, if you're a repeat homebuyer you can still do rural developments. Some of the pros with rural development is that it is a 100% financing program, you don't need any money down to use that rural development program. And then like I said, you can be a repeat user of the program. So, if you qualify for the first-time homebuyer Rural Development loan, interest rates are lower. The one drawback to, well I guess, as far as those interest rates go, I think today, I think rural development was 2.75, and then four with the first-time homebuyer, and then without the first-time homebuyer regular rural development was like mid threes when I pulled rates yesterday, so. So you can see there is an advantage to doing the first-time homebuyer. Rural development does have a monthly fee that stays with the loan, it does not go away. Like private mortgage insurance would with a conventional loan, so. That is one thing to take into consideration. But, if you're in that position where, you don't have the money down or you need to use that, whatever money you have for closing costs and things of that nature, rural development can be a good program, so. It does kind of vary from county to county. So that's just one thing kind of to take into consideration, but obviously your lender will help you with that, so. Cause otherwise, it's, it's something to take into consideration. That first-time homebuyer RD loan is cheaper, as far as the rate goes than a conventional loan so. It kind of depends on how long you're going to be in the house, some of those things that, like I said, a lender can help you take into consideration, so.
- Are there differences between, in our world, we call them VC items, like broken windows, torn screens, the roof has to look good and stuff. So is there a difference between the RD conventional versus the RD first-time homebuyer in those terms there?
- You know, I don't think that there's much difference there. I think they follow some of the same guidelines as far, like you said. Whether it's hand rails, or peeled paint, or at least some of those things they're gonna wanna take into consideration. They're not gonna wanna get you into a house that you don't have money to put down on, and then turn around and have to make a bunch of repairs. You know, that's not the goal of the program, right? If you're in a financial situation that you can't, you can't afford that down payment, they don't want you to have to be stressed out about having to make additional repairs immediately after you move in, so.
- Okay.
- So I think some of those things would remain consistent but, and then the monthly fee, between the two is the same, there's no discounted deal there as far as that monthly fee goes.
- Perfect. All right, sounds good. Anything else, to touch base on that?
- No, no, I think that's just the general high points, obviously like I said, get in contact with your lender and they can help, help you make the best decision for you, so.
- You bet. Alright, thanks Mark, for joining us again, on this--
- Yeah! extended weekend here for Memorial Day. It's a little different with the COVID process but, as normal guys, I'll have all Mark's information on the top.
- I did get a haircut since last time, so. That was a nice improvement, so.
- Yeah, you were rockin' the 80s look there, I think, for a while with the mullet--
- Yeah, I almost had like a ponytail going on, so.
- The good ol' days.
- You bet!
- Anyway, I'll have Mark's information on the top, on the bottom, on the sides, mullet free, ponytail free. But if you have any questions, feel free to reach out to Mark. And if you have questions for us that you'd like answered on our next episode, let us know, we'd be happy to do that. So, again, have a safe happy Memorial weekend and everybody continue to stay safe and healthy during COVID here. It sucks, but we'll get past it, so.
- Yup. Thanks, Thanks Mark, appreciate it. Have a great rest of your week.
- Yeah, you too Shane, thank you.
- See ya.
Posted by Shane Andersen on
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