We Got Our Certificate of Eligibility USDA Direct! We still have questions.

[SuzyStellar]

I figured our payments based on the max loan amount and the intrest rate given in this certificate, but I though he told me a much smaller number over the phone the day it was mailed to us.  The max is 130,000 and the rate is 3.5%.  Anyone have an idea of how they calculate?  I thought he said payment would be around $240, and that judt doesn't work no matter how I work it with math?

The certificate says we will be reevaluated before the closing.  Does that mean everything all over again?

The certificate says it expires on April 4, 2012.  I thought we had 90 days with 2 30 day extensions?

It also says that if we choose a house with higher taxes or insurance it might effect the max amount?

So I guess we are in a hurry, and I am terrified to ask questions!  Please Help!!!!  Thank you!

[Anonymous]

Good luck, what state are you in ?

[Anonymous]

You might be eligble for subsidy which will be written as a separate document at  closing. They verbally told me my subsidy interest rates, that will lower my payment for the first year.

[Anonymous]

You are eligble for 2 30 day extensions. They say the request needs to be made before each certificate expires.

I requested my first extension by email to my underwriter. The second one they issued automatically a week before it expired, though I didn't need it.

Your payment quoted does not included escrow, taxes and insurance. That will be a separate figure but will be included in your monthly payment. Basically whatever the annual bills are divided by 12.

I still don't understand the way the insurance and taxes figures in to the approved amount, but based on as best understanding as I could get, I took the insurance and taxes and subtracted it from the approved amount and tried not to go over that amount in a purchase price.

eta: the estimated them in the certificate. Mine were just a little higher. You should be able to check on the taxes prior to submitting an offer to give you an idea of what you can do.

Hope that helps some~!