Re: USDA Funding[ Edited ]
01-27-2013 10:53 AM - edited 01-27-2013 11:03 AM
I'm currently in the stages of applying for USDA direct. I just filled out the pre approval and now they have sent me the offical ones. I've talked to the lady in the PA office (I think in Lebanon) a few times. She tells me that theres not a huge rush for me to fill it out because currently there is a wait list. There is no funding right now. They don't expect to know anymore about fundng until Feb. At my office, she said the line was about 7 applicants. So since you already applied in dec., if there is more funding in feb. and you don't have too many people in front of you on the wait list, then you should get funding.
It is worth waiting. You won't have to pay a PMI, you won't need to put down a downpayment, your interest may be subsidized, and I believe you would qualify for a bigger loan using USDA Direct.
The only con is the waiting. If you're willing to wait, then go for it. If not, if you don't get the funding in Feb. (or whenever they get more money) , you may not get any until the next fiscal year for them, which starts in Nov? maybe earlier.
My back up plan for the USDA Direct, since I'm not willing to wait that long is going FHA. I'm going to apply for downpayment assistance, you would qualify too I assume. In my county, we'll have to go to a 1-1 session and take a class. They will put down upto 5k to 7k depending on where you live in the county.