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USDA RURAL DEVELOPMENT

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Anonymous
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Re: USDA RURAL DEVELOPMENT

Hi Jnava, I believe the key to your question is the fact that your home is being built at this time, don't worry about the form right now, because remember it is a closing costs form of charges, expenses, loan funding, that are submitted AFTER the work is complete, they will have to inspect the newly constructed home after it is complete to make sure that guidelines have been met.  I will try to find additional information on homes that have to be constructed using the USDA Direct Loan. I will send you what I find.

 

 

Message 71 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

http://www.rurdev.usda.gov/regs/handbook/hb-1-3550/1chap03.pdf

 

beginning at page 44 (midway down) I do understand what you mean, but it does depend on what process the underwriter is using, I would definitely call the person working on your file and ask her, don't be hesitant about it, ask her what it means, she has to be open with you, because she is also there to assist you with the process.

Message 72 of 86
Anonymous
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Re: USDA RURAL DEVELOPMENT

OK, I UNDERSTAND NOW. BUT SINCE I GOT THAT ELIGIBILITY LETTER IT DOES MEAN THAT IM APPROVED FOR THE LOAN RIGHT?
Message 73 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

yes...the eligibility letter actually is saying that you as the borrower are eligible based on your income, credit, repayment ability. If you have found a home in an eligible area, you are getting closer, now it is on the builder to make sure that it is up to USDA standards, and the person that is working on your case will handle all paperwork and requirements to make sure that the builder is following through, but I would definitely keep in contact with the builder and case worker, so that if communication stops between the two (maybe if the builder falls behind in scheduled process). Touch base I would say at least twice a week, and make sure if the case worker or builder says that they are expecting info from the other, be the middle person to make sure that it was received. Even if you have a realtor communicate often...as the builder, agent, or realtor...they may be working with diff clients/cases and you don't want to fall between the cracks. This is your best interest. Have you taken your homebuyer course yet, you may have to continue to submit monthly pay stubs (im not sure) until the loan is actually "funded". Once the builder is complete, USDA will go inspect the property, if everything is ok and all paperwork from you is submitted, they send you a  TRUTH IN LENDING to sign and send back, and schedule a time for you to come in/or over the phone to go over your packet, costs, making sure you understand the loan, any subsidy requirements etc. while waiting for the loan to be funded (money transferred). Relax and remember this is worth it. One more thing, they will require you to pay for your first year premium of your home insurance and your credit report. Smiley Wink
Message 74 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

OH, OK. THAT MAKES SENSE. AND YEAH ACTUALLY THE BUILDER THAT IM GOING WITH IS RAUSCH COLEMAN HOMES WICH DEALS WITH RURAL DEVELOPMENT LOANS ALOT . AND YEAH IVE ALREADY BEEN THROUGH THE FIRST TIME HOME BUYERS CLASS. AND LAST TIME I TALKED TO THE SALES PERSON FROM RAUSCH COLEMAN  SHE HAD ME SIGN THE CONTRACT WITH THEM AND THEN SHE SAID SHE WOULD BE SENDING IT TO RURAL DEVELOPMENT. SO I DONT KNOW WHAT HAPPENS AFTER THAT. BUT I HOPE EVERYTHING ELSE GOES GOOD. IM VERY SCARED THAT I WILL NOT GET MY HOUSE !
Message 75 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

THE HOUSE THAT I WANT IS NOW BEING BUILT. AND I KNOW THAT IT QUALIFIES FOR RURAL AREA. BUT ON THE APPRAISAL WHAT DO YOU THINK CAN GO WRONG?

Message 76 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

Jnava, I don't think anything will go wrong I think you will be fine. The builder wants to sell the house remember that, if it's under appraised your fine, I doubt it will be appraised substantially over what you are eligible for. Relax and remember, pray often, and don't worry, it's gladly not in your control. It's in good hands now, I'm praying for you too.

 

Jacinta 

Message 77 of 86
msnabs
Valued Member

Re: USDA RURAL DEVELOPMENT

Need some help on this question (s):  

 I am approved for the Guaranteed Loan Program. I have seen a couple of houses that I liked and may have one that I would be interested in putting an offer on. The only thing is, the closets are small and there is one bathroom in this particular house. My realtor states that I could possibly have the costs associated with the renovations added into the financing for the home, is that true and so how does that work? The price of the home is $80K and I have been pre-approved for $100K. Don’t know if I would offer that much, but I would need to see the comps for the area. Or would a better option, be to put in a offer and then do another loan to get  what I would need to make the renovations later? I am so confused and everyone has their own thoughts about what to do, but I figured you guys would  give me advice that is impartial and fair! Also the LO states that I could not do this through the USDA program and would probably not be financed because I would have to have PMI and the interest and higher loan payment....Please advise and/or let me know if you have enough information to tell me what I should be asking.

Experience is the best teacher........sometimes you have to pay for it with your youth.
Message 78 of 86
Anonymous
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Re: USDA RURAL DEVELOPMENT

JACINTA THANK YOU SO MUCH .. YOU HAVE BEEN VERY HELPFULL,ALSO I WANT TO THANK YOU FOR PRAYING FOR ME THATS REALLY NICE OF YOU. I REALLY APPRECIATE THAT.

                                                                    THANKS

Message 79 of 86
Anonymous
Not applicable

Re: USDA RURAL DEVELOPMENT

Generally the only way to do a rehab mortgage is with FHA, which as your LO told you would have montly PMI.

 

However, call your state USDA office. There is a USDA pilot program based on the 203k. It's not available in every state. (I was told that it was tried in Michigan and later dropped there. I don't know how widespread it is.) In Ohio there are two lenders able to write loans with this program. We just lucked out and stumbled across one, which is how we found out about it in the first place.

 

We are purchasing a home for $220k and including about $25k in improvements in the loan. It is a little more restrictive than the 203k at this point. First, like the 203k streamline you can't make any structural changes. In addition to that you can't do any landscaping (we wanted to pour a patio and that was considered landscaping.)

 

So, you need to find out if there is such a program in your state, and if so what lender you can use to get one.

Message 80 of 86
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