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Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

My USDA Direct loan experience so far.

[ Edited ]

  We applied April 9th, never had to do a pre app or anything, our office you just do the whole application, nothing has been by the book.

About a month later I got a request for our current earnings for this year Jan 1 - Apr 30 , ( we are self employed) turned it in the same day. Waited about two weeks and I called to find out about our application and the LO was kind of rude and said next week she'd get to our file.She finally called a few days shy of day 60 needing some help with our numbers and needed me to come in , I agreed to be there the next day.

  We crunched some numbers together. She still didn't add back a mileage deduction that should have been. She had a very vague help manual in front of her that only said depletion and depreciation could be added back .She obviously had never dealt with a self employed borrower.

 Anyway , two days later I got my Certificate of Eligibility in the mail and it was almost the max amount.

 We went house shopping the same day .After seeing a few 4 bedroom houses we decided to go to the USDA office to ask some questions about the max square footage. The max on our application package said 1800. We wondered about wiggle room. We were told they may give 1850 but anything over is shot down right away.(We have 4 children , 2000 sqft is modest for us)

We found a decent newer house , only 1440 sqft, on almost 5 acres and 6 thousand under our max amount on the certificate.Really hoping we can build an addition right after we buy.   Anyone know if we can build on right after?

 Turned in our purchase contract today , 6/14/2012.Projected closing is Aug 16th.

 

Hope I made sense.

Established Member
Fixinit2009
Posts: 27
Registered: ‎04-23-2009

Re: My USDA Direct loan experience so far.

wow...  thats great!! I am still waitin on the certificate of eligibility... what state are you in??


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Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

[ Edited ]

I am in northern Florida.

Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

A quick update. Apprasial was finallly done on the July 3rd. Was told not expect that report until at least a week. Things were delayed by a week or so due to TS Debby thankfully the seller is willing to give us as much time as needed, according to the listing agent.

Contributor
SuzyStellar
Posts: 109
Registered: ‎01-20-2012

Re: My USDA Direct loan experience so far.

How did you get them to overlook the acerage?  We were only allowed up to 2 acres.

Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

I am pretty sure the USDA rule on lot size is based on the ability to be subdivided. And that number is based on your county's laws and ordinances.

In my  area to be considered subdividable it has to be over 10 acres.

Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

   Both real estate agents started bugging me about finding out appraisal results on the 12th or so.They had me call the USDA office.The UW working my case actually called me back with the appraisal results that same day. House appraised for asking price which is fine with me.

   So , inspection is done.The only finding was a broken spring mechanism that holds one window open and it was recommended that the a/c unit be serviced.WDO report says that there's evidence of a past termite infestation in a workshop on the property. Do these types of thing usually have to be dealt with before closing? I was told by the lady that works the front desk at the USDA office that usually those minor things, no.The house only has to be safe and sanitary.

   Septic inspection came back fine .Still awaiting the water test results.Those two tests are required if you're not on public water/ waste.

   Another thing I haven't seen mentioned around here is, if you pay for inspections and such upfront be sure to turn in your receipts to the USDA so you don't get double charged for those services at closing.(so they told me) I ordered the survey today.

   Today , I got an email from the  UW she got the ok to obligate our loan on 7/25/12.Our orientation is on 7/26. We need to bring along tha past 3 month's bank statements , current P/L statement, and an insurance quote.

  Will update again after that.

Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

So, we went to the orientation and and to sign our loan commitment letter today , 7/26/12.They wanted me to get the inspector to rephrase his statement on the HVAC to say it was working, or have it serviced.We decided to get it serviced . We would hate to be facing a major repair down the road that we could have avoided.That's scheduled for tomorrow.Another thing was waiting on the survey.I think it has been completed, not quite certain today.I know it was started.(those can take 10 days to do)

Anyway, the lady in charge of our loan at the USDA mentioned they wanted to close by next Friday! I almost fell out of my chair. 8 days? Didn't see that coming.I didn't bother to pack or get too excited after reading other people's experiences.

So as far as the window issue and termites in the workshop is not a big deal at all. The HVAC was the only concern in my case.

 

I actually got an email about the water test a few minutes after I posted my last post.Everything was fine , no coliforms.

Waiting now for the clear to close.

Member
QPONKAT
Posts: 9
Registered: ‎05-08-2012

Re: My USDA Direct loan experience so far.

[ Edited ]

We had a few bumps in the road the week before closing.They said they possibly wanted us to get a CPA to verify our current earnings etc but we all found a way around it. Their guidelines are really vague in some instances if you're a 1099 employee, ie self employed.

We did close on the following Monday! Only had to bring an amount over 1400 somehwere to the closing table.Didn't find out that amount until 4 hours before closing!

But we are now homeowners! FINALLY! (had to get one heck of a mower to mow this lot) It was all worth it for sure.

 

Closed on Aug 6

Established Member
Fixinit2009
Posts: 27
Registered: ‎04-23-2009

Re: My USDA Direct loan experience so far.

congrats to you!!!

I am still hanging in there and I swear I almost cancelled this whole deal like TWICE.  USDA direct in NY is a tough nut.  Found a house was on 18 acres was told not modest for their program.  Found a house on 1.9 acres but 3,000 sq feet not modest for their program.  Now the house I made the actual offer on is on 2.8 acres, and 2047 sq. feet.. They are complaining about the 47 square feet.  I am having it inspected on Wednesday, so I hope I can get the inspector to over look a closet ... smh.. this has not been a fun process at all.  But I'm still hanging in there.  I am so close to home ownership that I can almost TASTE it!!! 0_0


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