Just found this site today and really enjoy reading about everyone's stories. Just wanted to see if I could get a little reassurance on a USDA Guaranteed Loan I am trying to get approved for within the next couple weeks.
The house: I was pre-approved by my lender back in March to build and finance a new home located in a USDA area in Indiana. Price of the home is $166k and the price of the loan with upfront fee is $169,900. The house is about 2 days from completion, when all the appraising/approving begins. Very nervous/anxious.
My details:
Income: $50k, all salary. 1 year of work history, which started directly after I received my Master's (in the same field I currently work).
All 3 credit scores are 710+, no late payments, collections, or bad marks at all, so I feel confident there.
My monthly debt is $205 car, $40 discover card balance, $270 student loans - so $515 in total.
With Escrow, Mortage, and 0.3% PMI, Lender estimates $1025 monthly for the new house.
I put my $1000 earnest money down, but that's really all I have in savings (Maybe an additional $500-750 at closing)
The lender I went through was offering basically no closing costs and a sizeable credit towards my Escrow setup. Based on that, my earnest money should cover all of the closing costs and I think I'd even get some back.
With all of that, my DTI ratios would be 25/37, which is under the limits of USDA, but not by a lot. So the fact that I am close to the limits and don't have much towards savings is what has me worried. Also, because of the upfront fee I am looking for 103% of the home value for my loan - which worries me as well.
Any thoughts would be much appreciated!
