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Trying to get approved for USDA Rural Development Loan!!

Established Member

Trying to get approved for USDA Rural Development Loan!!

   Hi everyone....First let me say this site has lots of great feedback.....

 

Anyhow Im trying to buy my first home and get qualified for a guaranteed usda loan.....I know i meet all criteria guidelines, although my DTI ratios are tad bit high....My bottom ratio is 43%.....USDA says there max is 41%..I have 622 mid score and no serious deliquencies to mention......

         

I guess my question is does anyone think they would make an exception for me......I have a personal loan that will be paid off in three months and should put me under 40% DTI.....

 

I have already signed a sales contract and my mortgage broker is preparing my info to attempt to pass thru GUS and hopefully get an automated approval....Gosh i hope the accept my loan!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Message 1 of 24
23 REPLIES
Community Leader
Valued Contributor

Re: Trying to get approved for USDA Rural Development Loan!!

If you have an installment loan that will be paid off in 3 months then they should not be using that in your DTI to begin with.  If it is a very large payment then it will be helpful to have money in reserves to show that you have the funds to cover a payment or two for that loan


EQ 679 EXP 700 TU 763
Message 2 of 24
Established Member

Re: Trying to get approved for USDA Rural Development Loan!!

thanks for the reply...............does anyone else have any knowledge of this or has dealt with a situation like this before????
Message 3 of 24
Contributor

Re: Trying to get approved for USDA Rural Development Loan!!


onelowchef wrote:
thanks for the reply...............does anyone else have any knowledge of this or has dealt with a situation like this before????

Hi onelochef,

 

Good luck. I know how you are feeling as I am trying for a usda guaranteed loan too. My problem is my income is low. I filed the papers Wed. I called Friday and the man from Countrywide said I was approved for a "condictional"  loan for 150k. I'm not sure what that means. I was wanting to have a house built and he is waiting to hear from the contractor. My big concern is a affordable monthly payment. 

 

I'll keep my fingers crossed for you.

Message 4 of 24
Established Contributor

Re: Trying to get approved for USDA Rural Development Loan!!

you income can't be that low to get approved for 150K .  Smiley Happy  My income is around 38000 a year and I was only approved for 110,000 at 5.5 percent with USDA guaranteed.

Message 5 of 24
Contributor

Re: Trying to get approved for USDA Rural Development Loan!!


granny031350 wrote:

you income can't be that low to get approved for 150K .  Smiley Happy  My income is around 38000 a year and I was only approved for 110,000 at 5.5 percent with USDA guaranteed.


I'm about 33k. When I first spoke to LO he predicted 115k to 125k.

 

Congrats.

Did you find a house? I'm in NM and houses are kinda high here.

Message 6 of 24
Frequent Contributor

Re: Trying to get approved for USDA Rural Development Loan!!

I agree with the previous poster that a payment that is only a few months to be done should not be included in DTI, that aside. I have heard one of the resident gurus here say that he has seen DTI much higher than 41% with compensating  factors. Mine was 43%
Message 7 of 24
Established Member

Re: Trying to get approved for USDA Rural Development Loan!!

thanks again for the input...................

 

 

teacherhere, you said you had 43%  .....did you get approved for usda loan and if so was there any factors you had to show.........also if you dont mind what were your middle scores??

 

 

Also has anyone had any experience with the GUS underwriter system.........does anyone think GUS would accept the 43% DTI????

Message 8 of 24
Frequent Contributor

Re: Trying to get approved for USDA Rural Development Loan!!

yes it was a USDA loan, mid score 751 which the LO told me was a compensating factor of in itself. I also have about 12,000 saved although I was not going to need it for downpayment or closing.
Message 9 of 24
Established Member

Re: Trying to get approved for USDA Rural Development Loan!!

thanks teacher.........so i guess my question again is does anyone think usda will accept my loan with me having 622 mid score and a 43% DTI ratio with $1000 in savings.........again some of my debt will be paid off in a few months that would change my ratio.....
Message 10 of 24