USDA Direct and square footage

[Anonymous]

Good Morning!

As I am plugging along in the USDA Direct Mortgage process.....I knew there were going to be hurdles and it was going to take time...just a little discourage but will pull through.

I recelved a letter in the mail yesterday that the house I have chosen "exceeds the standardized square footage consideration for modest dwellings of 2,000 square foot". In order to obtain a waiver I must submit 12 months worth of utilities to make sure I have the ability to pay them. Goodness!  The MLS lists 2,112 square foot. The upstairs, living space, is 1372. The partially finished basement is an additional 740. Should they be using the combined square footage? My realtor thinks not and that the agent for the seller should not have listed it that way on the MLS.

Either way, I can afford the utilities and will submit the documents request. Just adds more time. Grr. 

[Anonymous]

No advice?

[Anonymous]

I am not sure, ours was guranteed (I had to look it up to see which one we have) and we bought a 3200 square foot home.  The utilities are killer though but no one asked anything about them beforehand.  We can afford them but WOW what a shock coming from a 1200 square foot house!

[ADOKK_5]

Can you tell me the outcome because I'm going through the same thing

[DanTheMan77]

Finished basements, or any below grade or unheated spaces, are not included. There are two different types of square footage: Gross Building Area (GBA) and Gross Living Area (GLA). It is the GLA that should be used.

GLA is defined by HUD as follows: Gross Living Area is the total area of finished, above-grade residential space. It is calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. Finished basements and unfinished attic areas are not included in total gross living area. 

GBA is the total floor area of the building including all basement space. Realtors often use this measurement to make the house appear to be larger than it is on the listing.

The USDA should not make a decision based on the sq. ft. shown on the listing. This information should be obtained from the local tax office.