LO says 7k too much saved for USDA?!?!

[jcstarkey8826]

Sorry, but I still disagree with jazzy. I do know whose restrictions they were as well as the reason. A simple visit to the USDA website cleared that up in about 5 minutes. I do not feel bad, nor should I. I have to do either USDA or FHA. FHA would leave me in more of a financial strain (but would be ok) than USDA. My income is well below the limit for my county. I am not wealthy, I do not have wealthy parents to help me, (mine have never owned a home) and Im a young adult trying to grow up and buy his first home to propose to his gf and start his life. You can read on the USDA website what the program was intended for, and it describes my situation to the letter. I dont make a lot of money, but just because I saved more money than most people can will not make me feel bad about my decision. AGAIN: I am doing this, I do not feel bad about it, and was not seeking anyones opinion about fraud or taking money from others that need it more. I need the help just as much as a first time homebuyer. This post was simply a question to hear about other odd or strange stipulations others have dealt with when going through the USDA process. I was just curious.

PROGRAM ELIGIBILITY

Borrower Eligibility

• In order to be eligible for a Rural Development guaranteed loan, the Borrowers’ adjustable household income cannot exceed the maximum allowable income limit set forth in Rural Development Instruction 1980-D §1980.348, Exhibit C (use moderate-income limits). (http://eligibility.sc.egov.usda.gov)

• The borrower must not have sufficient assets to obtain other traditional conventional financing. The borrower may, however, qualify for an FHA or VA loan. In other words, applicants may have liquid assets and be eligible to participate in the GRH Program. Those assets, however, should not be sufficient to meet the down payment and closing cost requirements associated with a conventional uninsured mortgage product (LTV ≤ 80%). This means applicants do have a choice of USDA-Guaranteed Rural Housing, FHA, VA, or a conventional mortgage product with private mortgage insurance.