This loan process can be a bit "trying" to say the least but well worth it.
In my experience I started this loan in early August. I had tried to get a conventional home loan but couldn't qualify because of my income and my credit score was not that great. (655) At least without a 3%-7% down payment and co-signer.
I've got a couple friends in the banking business that advised me to look into the USDA direct loans. So, I decided I would at least take a look at my options and give the field office a call and see what I would be able to do.
After talking with the LO on the phone, I went ahead and printed off an application, got all the documents together that was needed with the initial application along with my $32.00 credit report fee. I submitted my application and recieved a letter stating I was selected for processing 2 weeks later.
I was so excited! I went ahead and started looking at houses, seeing what there was in my area. Unfortunately, the area I live in didn't have much to choose from. It started getting frustrating. I would see houses I really liked but were either too much work to do on the inside, was over maxium square footage, etc..
After several phone calls waiting on my certificate of approval, I finally recieved it alittle over a month later. It gives you 30 days to find a house and be in contract before it expires. However, if you call the field office ahead of time, they will grant you an extension. I was approved for $135,900. With 3.125% interest rate.
At this time, I looked and looked and looked some more. To find the perfect house for my two boys and I. I didn't want to just "settle" for anything.
I had many days where everthying felt hopeless.
2 weeks before my certificate of eligibility expired, i recieved a call from my realtor. She told me she had the perfect house for me and my two boys. It was 1400 sq ft, 3bedroom 1/2bath. Ranch home. But, it was not even on the market yet and needed alittle bit of work done. I can overlook things so I had her go ahead and show it to me. The next day, went and looked at the house. It was absolutely beautiful, I was in love!
I waited a couple days and after taking my dad and my brother in law there, to have them look at the house, November 15th, I decided to put in my offer for 125,900.
The sellers accepted! I was sooooo happy!
November 25th, I was in contract.
My inspection was then ordered December 2nd and then didn't have my appraisal til December 26th.
Since then, I've waited and waited. Finally, on January 16th, I recieved a phone call from my LO. She explained to me that there are 2 different brackets for the direct loan. There is very low income and low income. Since I pay out in child care around $5,000.00 yearly, I would fall under the very low income guidelines. She proceeded to tell me that she would NOT be able to go any further with the loan process because the funding has been exhausted. My heart sank, I was about to shed some serious tears!
After a brief pause she said, "but, if you are willing to waive your child care fees from your calculations, you would quailfy under the low income guild lines and it would only be a 3 cents difference." in my mind I was thinking, "did this lady almost give me a heart attack over 3 cents?!" I was MORE than willing to waive the child care fees if it meant I would have my loan funding within 24-48 hours! Absolutely! I simply had to write up a statement stating I would waive those fees and sign and date it and fax it to her.
)
So, here I am, with a closing date of Feb, 28th. And two happy little boys that will finally have their own bedrooms and a place to finally call HOME!
I know this is a long post but this is just the experience that I have had going thru the direct loan program. And to others, don't be afraid to ask questions, to make phone calls, lots of phone calls! And never give up on your hopes and dreams!
Good luck to everyone going thru this process!)
In my experience I started this loan in early August. I had tried to get a conventional home loan but couldn't qualify because of my income and my credit score was not that great. (655) At least without a 3%-7% down payment and co-signer.
I've got a couple friends in the banking business that advised me to look into the USDA direct loans. So, I decided I would at least take a look at my options and give the field office a call and see what I would be able to do.
After talking with the LO on the phone, I went ahead and printed off an application, got all the documents together that was needed with the initial application along with my $32.00 credit report fee. I submitted my application and recieved a letter stating I was selected for processing 2 weeks later.
I was so excited! I went ahead and started looking at houses, seeing what there was in my area. Unfortunately, the area I live in didn't have much to choose from. It started getting frustrating. I would see houses I really liked but were either too much work to do on the inside, was over maxium square footage, etc..
After several phone calls waiting on my certificate of approval, I finally recieved it alittle over a month later. It gives you 30 days to find a house and be in contract before it expires. However, if you call the field office ahead of time, they will grant you an extension. I was approved for $135,900. With 3.125% interest rate.
At this time, I looked and looked and looked some more. To find the perfect house for my two boys and I. I didn't want to just "settle" for anything.
I had many days where everthying felt hopeless.
2 weeks before my certificate of eligibility expired, i recieved a call from my realtor. She told me she had the perfect house for me and my two boys. It was 1400 sq ft, 3bedroom 1/2bath. Ranch home. But, it was not even on the market yet and needed alittle bit of work done. I can overlook things so I had her go ahead and show it to me. The next day, went and looked at the house. It was absolutely beautiful, I was in love!
I waited a couple days and after taking my dad and my brother in law there, to have them look at the house, November 15th, I decided to put in my offer for 125,900.
The sellers accepted! I was sooooo happy!
November 25th, I was in contract.
My inspection was then ordered December 2nd and then didn't have my appraisal til December 26th.
Since then, I've waited and waited. Finally, on January 16th, I recieved a phone call from my LO. She explained to me that there are 2 different brackets for the direct loan. There is very low income and low income. Since I pay out in child care around $5,000.00 yearly, I would fall under the very low income guidelines. She proceeded to tell me that she would NOT be able to go any further with the loan process because the funding has been exhausted. My heart sank, I was about to shed some serious tears!
After a brief pause she said, "but, if you are willing to waive your child care fees from your calculations, you would quailfy under the low income guild lines and it would only be a 3 cents difference." in my mind I was thinking, "did this lady almost give me a heart attack over 3 cents?!" I was MORE than willing to waive the child care fees if it meant I would have my loan funding within 24-48 hours! Absolutely! I simply had to write up a statement stating I would waive those fees and sign and date it and fax it to her.
)So, here I am, with a closing date of Feb, 28th. And two happy little boys that will finally have their own bedrooms and a place to finally call HOME!
I know this is a long post but this is just the experience that I have had going thru the direct loan program. And to others, don't be afraid to ask questions, to make phone calls, lots of phone calls! And never give up on your hopes and dreams!
Good luck to everyone going thru this process!
)
Wow! Congrats! I'm looking to start in a few months, so this was enocuraging. I hope funds won't be completely exhausted by the time we start!
Starting Score: 588
Maluba, depending on your state and what income guildelines you fall under, that determines if funding is available. You would want to call your field office.
Target1212, I had to provide my last 3 paystubs, the last 2 years of my w2's, my statements from what I recieve in child support, and my last 2 bank statements (every page regardless if it's blank or not)..photo Id, ss card, etc...if you get onto the USDA website and print the application off or request an application to be mailed to you, there will be a check list attached so you know what you will need to send in. I would suggest if you want to know if you qualify for sure, you should call the field office closes to your area and they can let you know if you do and answer any questions you may have as far as your income goes. If this is your only option on buying a home, please be patient!) it's so worth it )
Target1212, I had to provide my last 3 paystubs, the last 2 years of my w2's, my statements from what I recieve in child support, and my last 2 bank statements (every page regardless if it's blank or not)..photo Id, ss card, etc...if you get onto the USDA website and print the application off or request an application to be mailed to you, there will be a check list attached so you know what you will need to send in. I would suggest if you want to know if you qualify for sure, you should call the field office closes to your area and they can let you know if you do and answer any questions you may have as far as your income goes. If this is your only option on buying a home, please be patient!
) it's so worth it )