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USDA resubmitted to underwriting

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Anonymous
Not applicable

USDA resubmitted to underwriting

In October I applied for a USDA guaranteed loan and was preapproved for $155,000 @ 6.75% after I settled a credit card charge off on my credit report.  My mid score at that time was 626.  All the other problems (a repossession, settled charge-offs, and late pays) are all over three years old and are due to my ex-husband refusing to pay anything when we split up.  The only debt I have now is my car loan which I have paid faithfully since I got it two years ago.  When the file was submitted to Chase they asked for a debt explanation letter, which I provided the next day.  There was a collection account from BMG music for $190 reported to Trans Union and Experian that I had no knowledge of and is probably fraudulant.  It has already been removed from the Trans Union report and I'm waiting for the collection agency to respond to my debt validation request.  My mid score is still over 620, though.

 

Now the house is almost finished (I decided on a new doublewide since there's not much to be had around here for less than $200,000) and Chase Rural Development denied the mortgage.  They say because of my credit and not having enough income.  The issue with the income is because two of my children are over 18 so Chase reduced that income to 1/3 of what I acually receive.  

 

I went to Child Support Enforcement and got a print out of the account history over the past year -- which shows steady payment over that time, an end date of 1/3/16, and arrears over $21k.   The court order states the order remains in effect until the *youngest* child turns 18 and also that if there are arrears the order is paid *in full* until the arrears are satisfied.  Do you think this is good enough proof that I can count on that income for at least 3 years?

 

On Tuesday the loan officer resubmitted the package to Chase and I have yet to hear whether they will now approve it.

 

Needless to say, I am devestated and anxious.  My children and I have been living at a friend's house since November and it hasn't been easy on them.  We'd been living in a trailer park, paying almost $600/mo lot rent and the trailer was falling apart (but paid for).  The lease was up at the end of November and when faced with signing a 5 year lease I decided to see if I could get a new house a bit sooner than I had planned.  And it seemed that I could!  Now if this mortgage doesn't go through I'm going to have to find a place to rent -- not an easy task in my area and, ironically, the rent will be more than the mortgage (including taxes and insurance) would have been.  

 

I know everything is on the edge (my credit and ratios), but as far as I can tell I do meet the requirements.  Do I have a chance?  Should I maybe try another lender?

Message 1 of 8
7 REPLIES 7
granny031350
Established Contributor

Re: USDA resubmitted to underwriting

when I applied to USDA guaranteed, it came back as no mobile homes.  There was something about being on a permanent foundation however so hopefully that won't be an issue for you.  I looked high and low for affordable house that wasn't a modular and or a mobile home.  GL
Message 2 of 8
WannaHouse
Valued Contributor

Re: USDA resubmitted to underwriting

Granny is right. It says in the manual they will not approve a mobile home. A modular home that is set on a solid foundation, or a basement is okay.

Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 3 of 8
WannaHouse
Valued Contributor

Re: USDA resubmitted to underwriting

This is what it says for my state:

 

 

 MANUFACTURED HOMES

Existing manufactured (HUD code) homes are not permitted unless they are already financed by Rural Development (GRH or Direct 502 loan).

Underwriters (and appraisers) must determine whether the unit is a “manufactured” or a “modular” home. There are no restrictions on a modular home, even though they are built off-site. Modular homes must meet all the same Uniform Dwelling Code (UDC) requirements as “stick built” homes.

Existing homes that have the characteristics of a manufactured home must be underwritten carefully to verify that the home (or any part of the structure) is not a manufactured (HUD code) home. Some appraiser comments or characteristics to watch for include: mobile / manufactured home appearance, presence of FMHCSS tag on the dwelling, floor plan, slab or pier foundation, presence of skirting, presence of feature board walls, presence of metal structural components, evidence of ownership is a title, furnace and water heater is located on the main floor, etc.

New manufactured homes must be purchased, installed and warranted from an Agency approved Dealer – Contractor. Click here to view a list of Dealer – Contractors approved for Wisconsin in the GRH Forms section. Dealers not listed on our approved list should contact any Rural Development office for the application and requirements for becoming an approved Dealer - Contractor.

Dealer – Contractors must use a single construction contract to include the purchase of the home, installation of the home on a permanent foundation, and any other site development work. No “do it yourself” work by the applicant is allowed. The Dealer – Contractor must provide a 12 month warranty on all work completed under the construction contract, including
Section 3 Rev. 05-19-2008 Page 5 of 10
the work completed by their sub-contractors. (Refer to the previous section "New Home Financing & Construction Docs." for information on lender file documentation.)

The set up requirements for Rural Development are different than those of FHA/HUD or WHEDA. The manufactured home must be financed as real estate along with the site.

The home must be permanently installed on the site with all running gear and towing equipment removed.

All foundation types and plans must be Wisconsin UDC approved. A list of state approved Uniform Dwelling Code (UDC) inspectors can be obtained in the Safety and Buildings section of this web site: www.commerce.state.wi.us.

Acceptable types of foundations for manufactured homes include full basements, crawl spaces, and concrete slabs. All foundation perimeters must be enclosed with a permanent building material such as concrete, cement blocks, or treated wood. In no cases will metal or vinyl skirting be accepted.

 

 http://www.rurdev.usda.gov/wi/programs/rhs/library/Originator-Manual-Section-3-Property-Eligibility....


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 4 of 8
Anonymous
Not applicable

Re: USDA resubmitted to underwriting

There is no issue with it being a manufactured home.  In fact, the dealer is trying to drum up business by advertising the availability of this loan. I really didn't want another trailer, but the cold hard truth is it's all I can afford and since I really, really want a home of my own on my own land I had to bite the bullet and accept that. 
Message 5 of 8
WannaHouse
Valued Contributor

Re: USDA resubmitted to underwriting

I think this needs to be asked of your LO. They are the only ones that can truly answer it.

Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 6 of 8
saywhat0
Member

Re: USDA resubmitted to underwriting

Does USDA combine the land and home in one package? Will they buy the land as well as the manufactured home?

 

THANKS!

Message 7 of 8
azguy13
Senior Contributor

Re: USDA resubmitted to underwriting


@saywhat0 wrote:

Does USDA combine the land and home in one package? Will they buy the land as well as the manufactured home?

 

THANKS!


I would suggest you start a thread under "Mortgage" with your question. This thread is from 2009 and you will not receive much feedback when people see that. 

Message 8 of 8
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