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A few USDA questions...

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goodygoody
Regular Contributor

A few USDA questions...

Hi again folks!

 

I think I asked this before and didn't get a response, but wondering, though USDA doesn't require a down payment, are you allowed to use a down payment?  Or if you have a down payment, will you be required to apply to FHA?  We'd qualify for USDA income guidelines in our area, but will probably qualify for FHA too.  But since USDA doesn't require mortgage insurance, if we find a house that is in a USDA zone, we'd probably rather use that program.  The sticky post about different types of mortgages says USDA is program of "last resort." Does this mean we have to apply for other financing and be rejected before applying to USDA? 

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Anonymous
Not applicable

Re: A few USDA questions...

What I was told (and have on Form RD 3550-23) is that anything over $15k in non-retirement assets in excess of the adjusted area median income limit are "required" to be used toward the purchase for USDA. I would assume you can if you want to.

I did a Direct, not sure if that makes a difference as the form doesn't specify.

 

As far as applying for other programs before being determined eligible for USDA, I think it depends on a few factors. What you do have to put towards the purchase of the home makes a huge difference as well as your income and scores. If everything is within the eligibility requirements for USDA, I don't think you are required to apply elsewhere first. That is my understanding of it.

 

Have you considered a broker?

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