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Frustrated.. usda loan help

Bao
New Member

Frustrated.. usda loan help

Okay so here is the rundown of our situation. We looked at a house we wasn't planning on trying to buy just yet but we fell in love with it and it is big enough for our 4 kids to have their own rooms. So on a whim we decided to go ahead and try for a usda loan because we fell in the minimum guidelines. So we find a lender th mat doesn't have any overlays and sign a contract with the seller for a closing date and all of that. We didn't have to put any earnest money down so we went ahead and went on with the process. The lender got all of our documents and such and ran them through gus which came out refer/eligible. I asked her why it was a refer and she said because of the credit score and credit history but they manually underwrite. Per contract we had to have an inspection done in 10 days which it is done. Then an appraisal in 21 days so the lo has made an order for that and told us that if we get cleared to close then we can roll that into our closing cost or loan (can't remember exactly ). She said normally they would ask for a check upfront but she is trusting that if the loan doesn't go through that we will pay them. I'm not sure if that is okay but anyway she is our lo and an account executive for the company  (not sure if that makes a difference. But anywho, let me let you all know everything I can.
Credit scores.
Tu. 620
Eq. 587
Ex. 585
(I know these are low but I was one to always pay everything in cash when I was younger and have had a few collection )

Collections.
1. Bank that was overdrawn to $370 back in 2013 but was reported or refreshed June 2016. We stated in loe that will pay this off if needed.
2. Installment loan that I was late on 2 times in 2012 or 2013 and it was paid off.
3. The rest are all medical collections

Debt to income ratio.
19%/29%

Open tradelines.
1.Credit card. Opened in December 2015 The minimum payment is $25. I keep utilization  under 30%
2. Car loan. Opened in February 2016. Payments on time.

Closed tradelines.
1. Installment loan. Paid off April 2016. Payments on time
2. Matco tools. Paid off 2015. Payments on time.

Credit inquiries.
1. Direct tv. Obtained service.
2. Roadloans. Was going to refinance car for cheaper rate but didn't go through with it.
3. Snap on tools. No new credit
4. 3 of them was mortgage shopping.

Non traditional tradelines
1. Utility bull past 24 months always on time
2. Rent verification for 12 months can go back to other landlord to make it 24 months and always on time.
3. Gas company. 24 months paid on time
4. Car insurance premiums.  Have paid 2 six month premiums in full which will equal 12 months.

Income.
$36,000 roughly with no overtime

House price.
$74,000

Reserves.
$2000

Gift funds.
$1000

Time of employment.
3 years

The seller will pay $4000 of closing costs.
So I've posted before but I wanted to give more detail. We have been sent off to processing. I've already did a letter of explanation and after processing will be a manual underwrite. And thus is where I'm nervous. Do we have a chance? I have been upfront and honest and have provided every document or lo has asked for that same day. If I missed anything that will help answer my questions please let me know. Oh! Also we need verification of rent as a requirement but we have problems. We have always been on time never late however we paid in cash to a private landlord. He said he can provide receipts, a VOR and our lease agreement. But since we paid cash and when we would get paid we would just cash our check and pay the rent out of that inoted of deposit it. So I feel like now we are definitely not going to be approved. I was having a little bit of confidence until this because she said everything on gus came back great besides the score being lower which needs the VOR. GREAT! 😒😒😒😒 and I don't know if they will let us compensate in anyway since this is a requirement. I mean we have 12 months of car insurance paid on time, 12 months of utilities paid on time, 12 months of dish paid on time and we could even go back two years with this. The last landlord we had and the one before him we did pay by money order but that was 1 and 2 years ago so I doubt we can do anythung with that. This whole process is draining me. Now I'm not sure if we should cancel our appraisal or not because I don't want to have to pay for something that isn't going to happen. Any insights? Sorry for the lengthy post.
3 REPLIES
Established Contributor

Re: Frustrated.. usda loan help

So the truly horrible part of getting a mortgage is that nothing is guaranteed until you have the keys in your hand. If you don't get a flat denial then everything proceeds forward as if it is going to for sure happen until it suddenly doesn't (lots of stories around here). They do things in a linear sort of way where X has to be completed before z but X and Y can sometimes take place at the same time. The appraisal is part of your file which is all presented to underwriting. I guess you could see if you could get credit approval, don't know how often that happens. Once the underwriter signs off though USDA still has the final say.

If it is a direct loan it might be different. You can get the lenders handbooks and see exactly the criteria the applicant has to meet at RD.USDA.Gov
Message 2 of 4
Valued Contributor

Re: Frustrated.. usda loan help

Hang in there.  Sometimes, things take a long time.  Longer than we think...or longer than we want.

 

This is the end of September.  We did our app and were approved for a HELOC back in March (?) of this  year?  Conditional on the appraisal.  The appraisal came back much better than we could have dreamed for.  The "processor" apparently has us on her hate list.  Never met the gal, but whatever.  We've had our appraisal.  The title work has been ordered.  And we are just sitting here waiting...waiting for the "processor" to let the loan officer know that we can close.  Lol.  Still waiting...at this point, the LO is not happy with how things are going.  Not much I can do about it.

 

I have learned to be patient. Super, duper patient.  lol - can you believe there are weeks at a time I totally forget that we are in the "mortgage" process.  Ok, after reading your post, I did send a text message to the LO.

 

Hang in there.  And here's some of my vast stores of patience's....use it well.

Message 3 of 4
New Visitor

Re: Frustrated.. usda loan help

Any update??
Message 4 of 4