Re: USDA Direct Loan funding
12-09-2012 07:39 AM
Sorry for not responding sooner. Update on things I finally got the funding, and closed on my home a week before Thanksgiving. As far as any advice on the direct loans. You are doing the right thing olythurst2012 by researching the market. Also don't jump the gun...on putting in on a offer on a home just because you get a pre approval letter. I've seen alot of cases where people have done this...and funding not be there. Don't put in any offer until USDA LO gives the okay. Also once you get your actual funding contentment letter, and go ahead from your LO. The best advice I can give someone with little money. Make offer on a home below the asking price. USDA will loan you the actual appraised value of the home. The difference can be used for repairs required by usda, closing, and upfront homeowners insurance cost. For example if the home is priced at 70K, and the appraised value is 75K. Lets say you offer sellers 65K you have 10K for closing repairs, and the required homeowners insurance for the first year. Wishing you all the best of luck!!!