No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi all,
Not sure this is the correct place for this post so if necessary I will move it if someone tells me where.
I am looking for a home builder in east Texas (Wood County specifically) to build a home for me using the USDA construction loan. So far, I've spoken to 8 builders that I found online and none are interested in tackling it. One said it was because of the funding schedule and the tight funding. No idea what that means. Plus he did not want to fund a large portion of the construction cost. He is the only one who has told me his reasons for declining. The rest have never even bothered to call me or email me back once they see the construction documents.
So.......dear fellow Texans on this board....can anyone recommend or does anyone know of a home builder in east Texas that will build for me using this loan?
I've already had one expire last December because I couldn't secure a builder and I won't reapply again till I have one who will be ready to go once I am approved. And I don't anticpate an issue getting approved again. My credit is even better now than it was on the last loan.
Please help me if you can. I am getting very discouraged. And living with my parents again at my age (55) is depressing indeed.
Thanks,
happygal
Hi, I live in Tyler and I was extremely grateful to buy my first home with a USDA 502 Direct loan.
I'm going to be blunt, 2 yrs. younger than you so I'm gonna cut to the chase.
I read your other thread, and I am answering it here. The USDA 502 Direct is just that.
A DIRECT loan, NO bank involved.
You are upset because you want 3 acres and a new build. The USDA 502 Direct is for people who
otherwise cannot find a normal mortgage from a bank.
It is essentially a safety net loan, and the beauty is that you are not at the mercy
of a bank when you buy the home.
3 acres is just too much. That is a
generous size of property, if you can afford to take care of 3 acres then you should look into a
USDA Guaranteed loan. With a 502 Direct, you can't
have your cake and eat it too. I myself was under the gun so to speak when I was looking for my home.
I was literally out bid on 6 homes before I
miraculously found the cutest little house that had just been listed 15 minutes prior. My home is very small,
only enough room for 1 or 2 people tops.
It maxed out my alloted amount, the seller graciously paid my closing costs.
Sometimes when we try to force something to happen, in your case not finding any builders to take
it- that would be a good time to let it go and try to
find something already built that qualifies. A USDA 502 Direct is a no frills, bare bones type of a mortage
designed for a "vulnerable" person who
needs mortgage protection. A USDA Guaranteed is just as easy to obtain, has fewer contigencies and
rules and the USDA "Guarantee" means you
will find a lender happy to sell you a mortgage because the USDA agrees to back it.
The monthly payment terms and almost zero down plus a super
low interest rate comes with it. I know a 62 yr, old lady who just closed on hers.
I do not have a clue about builders, new construction, etc.
I would suggest a less push and more bending on your part. The universe is trying to tell you something.
I bought my home in Tyler just over a year ago with a USDA 502 Direct loan.
If you want 3 acres and a new build, I suggest you look into a USDA Guaranteed.
A 502 Direct is designed for a more vulnerable buyer. Someone who may
not qualify for a lender backed mortgage. The 502 loan is funded by the
government. No bells, whistles or frills. MODEST means modest. 3 acres
is not modest. You can't find a builder because the universe is trying to tell
you something. Try bending a little, either swallow your pride and look for
a built home for sale or try a Guaranteed route instead. 502 is a lifeline, not
for a dream house. Guaranteed USDA loans are easy to qualify for, have
excellent terms, interest rates and almost zero down. They are not so
stringent, way more flexible.