topic Re: USDA DIRECT wrong amount on certificate of eligibility? in Mortgage Loans

USDA DIRECT wrong amount on certificate of eligibility?

Anonymous — Wed, 02 Apr 2014 19:42:02 GMT

SERIOUSLY???!!!!

Our certificate of eligibility stated we qualified for $149,700 so we are under contract with a house for $148,830

I get a call TODAY while we are on the way to do the inspection stating there was an error and we only qualifiy for $144,500!!!

WHAT THE HECK?!

I told them we are going to lose the house unless they fix THEIR issue. It is NOT my fault.

I am standing my ground here.

$39,000 per year income, only $70 debt- does $5000 make that much of a difference?

Re: USDA DIRECT wrong amount on certificate of eligibility?

StartingOver10 — Wed, 02 Apr 2014 21:06:08 GMT

When you initially received your Certificate of Eligibility did they tell you the maximum amount you could spend for real estate taxes, insurance and HOA (if applicable)?

I mention this because it sounds like you are at the maximum DTI allowed and the property you have under contract has a higher amount for the total of those factors above that threw you over the max so they adjusted the amount you qualify for downward to compensate.

What was the LO's reason for the adjustment?

Re: USDA DIRECT wrong amount on certificate of eligibility?

Anonymous — Thu, 03 Apr 2014 03:37:21 GMT

If the max a DTI is 40% , that is a payment of over $1000!

at 24% our payment is 823. How do you say we are over the max DTI?

the certificate est taxes at 4300 and insurance at 600.

our insurance was a bit more but the tax rate is less in this area, by almost $100 per month.

the good news is they called the State office and were told that they had to honor the amount on the original certificate.

our payment with principal, interest, taxes and insurance should be around$820.

all we have to do is sign and affidavit stating we are ok with that payment.

the funny thing is that if we bought a NEW house for $140,000- after taxes and HOA fees, we would be at 830 anyway.

Re: USDA DIRECT wrong amount on certificate of eligibility?

Anonymous — Thu, 03 Apr 2014 03:39:01 GMT

No- they said the Certificate of Eliginility should have said $144,500... Not $149,700

it wasn't an adjustment, it was an error on the original amount. I guess.

i don't see how though, I have seen people qualify for 160,000 with a 35,000 income.