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Regular Contributor
J_G
Posts: 169
Registered: ‎07-12-2013

Re: USDA Direct after BK... here's my story

[ Edited ]

How did they take another offer? I thought you were under contract and they already exepted your offer Dan? I thought once you get the appraisal and have got mutual exeptince they can't take another offer? You never had mutual exeptance? I am 2 days past the 10 day contingency and the house already shows sold on the builder website and has a sold sign in the front yard. No one is allowed to go into the house. It is new construction. Can this happen to me?

7/1/13 - EQ = 593 TU = 578 EXP = 573 FICO
8/11/13 - EQ = 600 TU = 590 EXP = 603 FICO
10/1/13 - EQ = 611 TU = 689 EXP = 605 FICO
12/4/13 - EQ = 625 TU = 648 EXP = 604
Lender Pull 2/18/14 - EQ = 630 TU = 678 EXP = 594
Lender Pull 2/28/14 (EQ 640) (TU 660) (EX 655) Rapid re-score =)
New Contributor
rideswithchrist1
Posts: 99
Registered: ‎02-04-2014

Re: USDA Direct after BK... Here's my story

03/03/2014 - I recieved my Good Faith Estimate and Truth in Lending Statement from the USDA in the mail. Closing costs are estimated to be approx. $5,500. This includes the appraisal ($425), tax service fee ($102), home and pest inspection ($825), excrow deposit ($2,000), homeowner's insurance ($800), title insurnace ($1,000) and recording fees ($350). I'm hoping that the appraisal comes in high enough that all of these can be wrapped into the loan. 

 

 

I am paying for the home and pest out of pocket. What is the escrow deposit? Is that your earnest money?

Contributor
DanTheMan77
Posts: 133
Registered: ‎01-06-2014

Re: USDA Direct after BK... here's my story


J_G wrote:

How did they take another offer? I thought you were under contract and they already exepted your offer Dan? I thought once you get the appraisal and have got mutual exeptince they can't take another offer? You never had mutual exeptance? I am 2 days past the 10 day contingency and the house already shows sold on the builder website and has a sold sign in the front yard. No one is allowed to go into the house. It is new construction. Can this happen to me?


I'm in NJ. We have an "attorney review period" where the contract must be reviewed by your attorney before it becomes final. It was during that time that the seller recieved another offer. Their attorney never signed off on the contract, which in effect voided it.

Contributor
DanTheMan77
Posts: 133
Registered: ‎01-06-2014

Re: USDA Direct after BK... Here's my story


rideswithchrist1 wrote:

03/03/2014 - I recieved my Good Faith Estimate and Truth in Lending Statement from the USDA in the mail. Closing costs are estimated to be approx. $5,500. This includes the appraisal ($425), tax service fee ($102), home and pest inspection ($825), excrow deposit ($2,000), homeowner's insurance ($800), title insurnace ($1,000) and recording fees ($350). I'm hoping that the appraisal comes in high enough that all of these can be wrapped into the loan. 

 

 

I am paying for the home and pest out of pocket. What is the escrow deposit? Is that your earnest money?


Escrow deposit and earnest money are different. Escrow deposit is the money that is deposited with the mortgage company to initially fund your escrow account. The escrow account pays for insurance and taxes. The escrow deposit is usually 2-3 months of taxes and insurance.

New Contributor
rideswithchrist1
Posts: 99
Registered: ‎02-04-2014

Re: USDA Direct after BK... Here's my story

ok. 

I guess that is part of closing. We are not paying those.

we had the inspection done today- all looks good I hope

but- usda called today and said they don't know why my original certificate of eligibility came in at 149,700 when it should only be 144,500. 

they told me to have my agent change the contract to reflect the price of 144,500 and I told them no- this is a legal and binding contract and I will lose this house because 4 other people made an offer. 

They called me later after talking to the state and said since it was their error, they had to honor it, as long as we signed a form saying we could afford it.

 

so- now I am waiting for the appraisal right? How long will it take? Our option period ends on April 5th

New Contributor
rideswithchrist1
Posts: 99
Registered: ‎02-04-2014

Re: USDA Direct after BK... Here's my story

DanTheMan77,

  

   any good updates from you?  Did you find another home?

Contributor
DanTheMan77
Posts: 133
Registered: ‎01-06-2014

Re: USDA Direct after BK... Here's my story

[ Edited ]

I'll add a quick update...

 

06/29/2014 - Our COE and all of our extensions expired without us finding a house. Since we ran out of extensions, I had to fill out a new application - basically, I had to start the process all over. The application was mailed on June 29 so we're back to waiting. We took a month or two off from looking for a house when my car died. I had to buy a new (used) one, which I know will negatively impact my DTI ratio, but there was nothing else I could do. The good news is that my wife's car (loan is in my name) will be paid off early in a month or two, so that should bring my DTI back to where it was before. I thought about waiting until it was paid off and showing that way on my credit reports, but honestly I was just curious what I would qualify for now. If I don't qualify for enough now, I'll just revise my application once the car is paid off.

 

I wish I had better news to share - like "sorru I haven't posted in a while, but we were so busy moving and enjoying our new house I haven't had the time", but we knew that even though USDA qualified us, we still weren't where we wanted to be financially before buying a house. So, we made the tough decision to wait a couple of months.

 

As an added bonus, as of June 17, I am now a full 3 years out of BK. Doesn't really matter for USDA since my scores are above 640, but I guess it opens up some other options as well.

Community Leader
Senior Contributor
StartingOver10
Posts: 3,809
Registered: ‎03-06-2010

Re: USDA Direct after BK... Here's my story

Yes, you can now consider FHA programs too since it has been more than 3 years.

 

I am sorry you are having this difficulty. I hope you end up with an awsome place and the process of actually getting it fades into the background.


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