Denied by USDA?

[jzsnow]

We have been approved by the bank and being submitted tomorrow to usda! In Alabama, the current wait time is 23 days!

Have you heard of someone being approved by the bank yet denied by usda? I'm so nervous!!

[cocomadd]

Unfortunately I have heard of denials after being approved by the bank.  If your LO has USDA knowledge you may be OK.  USDA has specific guildlines specific to the USDA program, so it is almost as if you are applying twice.  But getting approved by bank is still a very good sign.

Best of luck!

[DrMac210]

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@jzsnow wrote:
We have been approved by the bank and being submitted tomorrow to usda! In Alabama, the current wait time is 23 days!

Have you heard of someone being approved by the bank yet denied by usda? I'm so nervous!!

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From what I have researched it doesn't happen often, BUT someone posted on here within the last week or so that it happened to them.   I'll try to find the thread......

 EDIT:  Here is the thread:  http://ficoforums.myfico.com/t5/Mortgage-Loans/Approved-by-Bank-Denied-by-USDA/td-p/2339883

[jzsnow]

In that thread, the poster want qualified because if the no lates in the last 12 months rule. We have met all the requirements that the usda has set forth. I'm just so nervous!

[jzsnow]

Wasn't. Not want.

[CreditRepairGirl23]

We just closed on 8/2 USDA loan in PA. From what I gather when USDA denies after bank underwriters approval - It is because of misinformation either by the applicant or the bank, house not appraising correctly , not in qualifying area etc.

I was so nervous throughout the process and my mortgage guy kept telling me USDA is "just a rubber stamp" and that the bank underwriting was the hard part.

But I was going to be a wreck until closing anyway..

and then our loan was "randomly selected by USDA for a full manual review/audit" I thought for sure they were going to make us miss our closing but it only took them 3 days turnaround.

Sending lots of positive vibes your way! It is an AMAZING feeling to walk away from closing with the keys to your new home !!

[tooleman694]

The bank guidelines are going to be more strict then USDA, so if you pass the bank there should be no reason not to pass USDA.

When I tried to do a USDA loan last year I got denied before the file went to USDA.

[basballguy]

USDA is pretty lax on some of their rules.  I've read around here even with judgments, people have still been able to get a USDA loan....some people pay it off before close, some people have a payment plan setup, etc etc.  USDA does seem to stick to their guns on payment history though.

[jzsnow]

Our last late was July 2012....so hopefully we are good on that end!