Another USDA question

[Anonymous]

My husband and I own a 3 bd 2.5 bath home, but would like to apply for a USDA loan to purchase a new home in the same commuting area.  We have a 5 year old daughter, a 16 year old son, are supporting his 60 year old mother, and are trying to conceive.  Would "outgrown" our current home be considered an exception to the inadequacy rule?  We meet all the other criteria.

[ShanetheMortgageMan]

I would think so - but probably only after you become pregnant.  5 people in a 3 bedroom home, 3 of which probably need their own bedrooms, is already cramped, but then you add a baby or two and I'd say it's definitely inadequate housing by most people's standards.  USDA is always happy to answer eligibility questions like this, so I'd recommend you contact your USDA office and get their input on it.  If you are going to use the Guaranteed version then it is up to the lender, but if you have the USDA office's opinion in writing and present it to your lender that can certainly be the difference maker.