Sick with worry

[Anonymous]

File finally came back approved USDA and according to LO approved by lender.  I was doing repairs as it is an estate sale and seller is out of state and didn't want to handle repairs.  Waited to do repairs till file was signed off due to concern that at the last minute something would come up and it would be denied.  Got approval end of last week was told to go ahead and get repairs done as they could not be escrowed, they would just need copies of bills and cashier's checks.  Got electrical done Monday, Well was installed Tuesday, pending well finish today as the weather has been rain since Wednesday.  So submit all the bills, well finishing today on schedule water tests on Monday with results after overnighting it supposed to arrive Wednesday,after which I will get a close date.  Then I get hit with a curve ball today, got an email from my realtor regarding an elevation survey that had been done.  I question her as to first of all why this wasn't disclosed in the beginning, as I could have used it during flood insurance time, and why it was being requested in the first place.  Was told in her response that the lender is asking about one.  So now I'm sick, absolutely sick, was told it was 100% approved and to do repairs, now I'm worried that it wasn't 100% approved as I was told and that at the last minute it will be denied.  Property is on an slight hill so I know it is not below grade and it is eligible for  flood insurance. 

[ShanetheMortgageMan]

Probably determining if it needs flood insurance or not, is it in a FEMA flood zone?

[Anonymous]

Yes it is,USDA is requesting it post approval of file.. 

Seller had an elevation survey done just got a copy of it today it appears as such:

Flood Zone:  AO

BFE: 648.9

Building Elevation:

Top of bottom floor (including basement, crawlspace, enclosed floor): 647.7

Top of next higher floor: 653.7

Attached garage: 653.7

Lowest elevation of machinery or equipment servicing the building: 653.5

Lowest adjacent finished grade: 653.1

Highest adjacent finished grade: 653.7

Lowest adjacent grade at lowest elevation of deck or stairs including structural supports: 651.6

SIGH so what does this mean in terms of USDA is the fact that the basement is 1.2 ft below the flood plain going to be an issue?  Looks like they had this elevation survey done in October of 2009, it was finalized Jan 2010.  Shouldn't this elevation certification been disclosed at offer?

[Anonymous]

bump for Shane

[Anonymous]

Ok so now USDA is sending the elevation survey to the state office to see if it is enough information to make a decision..   SERIOUSLY....  If it is they still have to send it to the state coordinator.

My loan officer said this will be the last USDA loan he does as they have gotten ridiculous..  

What does this mean as far as conditional commitment?  I was told prior to getting repairs they had given conditional commitment and then pulled it when they noticed it was in a flood zone even though the flood certification and FLOOD INSURANCE information was provided.

IF they do not give conditional commitment my LO is planning on going FHA but with the money I've put into the house and PMI there is no way I can come up with a 3.5% down payment plus closing costs and afford the monthly payment.  

Totally disgusted.

[Anonymous]

I'm still on hold for flood insurance too.  My insurance guy says this should be cleared before the end of the week.  Then we can agonize over another detail while we wait for USDA loans to complete.

[Anonymous]

Still no updates now one week since elevation survey was sent.  LO hasn't given me any news, I emailed the person handling the file at USDA in hopes that she can shed more light on the situation.  I'd like one question answered, does USDA give conditional endorsement then almost one week later require more documentation before giving conditional endorsement?  OR do you think they never actually gave conditional endorsement and that my LO jumped the gun figuring it would be NBD and it would be approved to get me off his back? 

[Anonymous]

Heather..  Did you hear anything back on yours.  From what I was reading the NFIP got an extention of funding through May 31st..  Hope this is good news for us..