My USDA guaranteed thread

[Annaliese]

Well, no approval tonight but LO told us that USDA wants to know the Landlord's phone/name (they want to see rental history) and they want to know if we are paying the '$100' medical bill in full prior to closing. 

We were going to pay this medical collection in full despite the fact that the clinic made an error but  LO told us not to pay it off because it can affect credit scores.  Aren't these type of stuff are usually conditions by the UW from the lender?  Is this typical for USDA to ask these conditions? I'm not thrilled because we may need to delay the closing again.. for the 2nd time

[Anonymous]

I haven't made it to USDA's desk yet, but I thought the same as you....that USDA pretty much just verifies all of the info submitted and the lender is the to request all of the stuff. But then again, I don't know much! Are they going to allow you to pay it at closing?

[Annaliese]

We are not certain  if they will required to have it 'paid in full' before closing. We will find out tomorrow. LO said that we will still close this Friday but I'm debating if we will just start processing the addendum extension to Fannie Mae in case it will not happen again this week. I'm just concern that the seller won't extend it again.

[Anonymous]

Annaliese, Any update? If your LO is confident that you will still close this Friday, I am sure everything will be fine!

I spoke with my MB today and he said everything is fine (as far as my conditions) and today he will have all of the homeowner's insurance info and the attorney said the title work stuff should be in tomorrow and that is all lender is waiting on to submit file to USDA.

[Anonymous]

Strut - Any updates with you?

[Annaliese]

No updates yet. We are waiting to hear from our LO and our realtor isn't happy about the 'we should be ok' answer from the LO.  We are likely going to ask the seller for another week extension. I am hoping Fannie Mae will accept the extension for the '2nd time'. *sigh*

[Anonymous]

OK, I would like to retract my earlier statement that lender is ok with all conditions.

I received 3 more today. One was easy - show relationship between myself and the person who I receive SS for (my daughter...different last name) I addressed this one and emailed MB a letter.

Second was needing bank statement showing check for earnest money cleared. I had already sent a copy of cleared check but now they need the actual statement. Not sure how to accomplish this because the check just cleared on the 21st and my next statement won't close for another week. I have emailed MB to see what I need to do (hopefully not wait a week+ for new statement)

Third condition was needing a structural damage report due to something on the termite inspection letter. There was a leak in the crawl space under washing machine...seller is fixing. I have an email into realtor to find out about this, as I have no clue what a structural damage report is or who does it.

On a good note, while getting home owners insurance quotes, I was able to cut my car insurance in half monthly !

[Annaliese]

Update:

We are set to close. LO told us USDA approved the loan. We are hoping to close this week but I won't get my hopes high until we have the keys!

And it's nice to hear you were able to reduced your car insurance payment while shopping for HO! 

[Anonymous]

That is awesome!! So excited for you!! You are getting soooo close!! What did they say about the medical collection?

[Annaliese]

USDA wants to know if we are going to pay it off before closing. We had to signed a letter stating that we will pay it off when we get the OK from the insurance company.  Insurance people are trying to figure out why we were sent to collections etc.  I'm glad it didn't stop USDA to approved the loan.