Missed USDA Deadline/Government shutdown,now what???

[cocomadd]

Well friends I am surprised I am not in a straight jacket in a mental asylum swatting imaginary flies after all I have been through!

My appraisal was delayed...I was told it fell through the cracks!  So, my file never made it to USDA before the cut off for my area ( they have proposed to stop funding due to my area not being rural enough, although the house backs to a farm with, sheep, goats, cows and horses!)  

NOW, the LO told me there was light at the end of the tunnel because Congress may do a CR (contnued resolution) he told me this on Monday BUT on Tuesday 12:01 the government shut down!!!! Shutting down USDA all together!

I am beginning to think I may not get this house!!!  Well, I was told I could wait since the house wont be ready till Dec, to see if USDA opens up and extends the eligibility....or if not to go FHA.   So I started the FHA loan as a plan B although today I feel it may be plan A....BUT the payments will be be $236 dollars more!!!

The loan will wind up costing us 50,000 for the life of the loan!!!  That is a lot of money!!!!!!!!!  Now, with the additional 200 plus we will be tooooo tight!  I do not want to have to eat Ramen noodles everyday.

The 3rd choice I have (had) was to go with citizens bank they were offering me a no money down loan with decent payment actually just the same as USDA....requires a 660....which I had a 664...BUT when the second loan officer pulled my report for FHA points were taken off my middle score so now I am at 655!!!!!!!

My question is should I give up??  Maybe I am not suppose to buy the house??  But we are so vested we already paid a 2,200 deposit and an appraisal fee of $475....not to mention all the $$ I spent on pulling scores on here...etc.  

Do you think is possibel to gain those 5 points again....Citizens will have to pull my report and that can make it go down even further!!!!  I am so frustrated.

Anyone dare to chime in?  

Thanks much

discouraged...

[bu11DawgNC]

I'm in the same exact boat. My LO did say that a memo went out saying that the map changes are delayed again, has anyone heard that? If that is true, you might want to hold out for the USDA loan still.

It would be nice if the government could get their act together, because this is killing us. We dont have long before we need to be out of our rental, and i just cant handle this stress anymore. Throw the maps on top of that... ugh. I should just keep renting.

[StartingOver10]

Cocomadd,

I was not going to answer your post because this is only my opinion, but you asked for opinions at the end of your post.

It seems to me that this is a good opportunity for you to reconsider your decision to purchase. If the $200+ difference per month makes your budget so tight that you will be living on 'Ramen noodles everyday' than it is not worth doing this particular deal. If you put yourself in a difficult financial position by completing the purchase, it will be a nightmare for you - not just during the purchase, but every month and every day of every month. Don't do it.

When you own a home there are many unforeseen issues that pop up from time to time: a/c or heat repairs, roof repairs and eventual replacement, plumbing repairs etc. Owning a home has a whole maintenance list that comes with it and you either do a little every month to keep the maintenance in check - or if you don't maintain it, you wait until something breaks (not really advisable). It is up to the owner to keep it up and we have all seen homes where the owner was not able to manage. It is difficult on the owner and it is difficult on the other occupants that may be in the home.

IMO buying a home should be a pleasure and not a nightmare. It should be something that you can comfortably afford and not be so tightly "forced" that any little item can throw you into a financial bind.

Sometimes it is just not the right time to buy on an individual basis. That doesn't mean you won't own a home. It only means you will buy one when the time and your budget are right.  Only you can truly answer that question. Review your actual budget. Allow for extra savings for reserves for maintenance and replacements. You don't have to spend your entire budget on a home. If you are approved for $X payment, there is nothing that prevents you from finding something less expensive than $X so you have a comfortable living and no stress day to day with your home expense. Don't put yourself into such a bind that it becomes difficult to make that monthly payment. JMO.

[Roarmeister]

+1 on that opinion StartingOver10.  Original poster may be able to salvage the deposit because of the circumstances being out of his control.

[BeBop]

I 1,000,000% agree with StartingOver10.

If a monthly mortgage difference of $250 equates to You eating $0.10 Ramen Noodles for lunch then you should re-evaluate your "purchasing power." Home accidents happen that'll cost you. you're also talking differences in electric bills.  What if a pipe burst? What if your A/C goes out?  so if you strecth yourself as thin as you're STATING then this probably isn't the best option.

Is it only you? No boy/girlfriend? No wife/husband? 

These are things you have to consider throughly before buying a home.  I know owning your very own home is a big deal but its not worth living PAY CHECK TO PAY CHECK, is it?

[cocomadd]

Thank you for all your advice!  yes, I agree I should not be living paycheck to paycheck.  Therefore, I will wait for the USDA or if I can find a better deal somewhere somehow.  Both my husband and I have decent jobs and pull in good money, but we are conservative and also have other bills.  We initially were pre-qualified for 306K.  The home is 218,000, so definately in our budget....but we don't want to pay more than 1300- 1400 in mortgage payments, this is the amount we felt comfortable with.  Now, if we opt for FHA we are looking at 1,650 or so.  I factored all of our bills with some incidentals and can cover the 1,600....but will have no savings or anything else for improvements.....etc.  Although the home is new...I am sure we will have projects here and there.....so YES I am waiting on USDA.  And NO i will not do FHA.

Thanks again and for the other person here waiting on USDA...glad you heard a memo came out, hopefully, the government will reopen and we could move forward...let me know if you hear anything else! 

-hopeful.