topic Questions and Answers USDA Loan in Mortgage Loans

Questions and Answers USDA Loan

Anonymous — Mon, 20 Feb 2012 18:32:34 GMT

We are in the final stages ...I hope to God, fingers crossed!

Here is what has happened so far, and I am running into snags unsure of the next steps. I wish it weren't a holiday

January 9              Went on the eligibility site for USDA loans Guaranteed and Direct, found eligible for both.

January 10           Called USDA field office asked if they had funding before going further, was told they do at the moment.

January 12           Filled out a 1 page pre qual that was sent to me from the field office, and mailed back.

January 17           Received a phone call to let us know based on the information submitted in the pre qual and the quick pull of credit, we were ready to fill out a full 10 page application.

February 1           Submitted the full application.

February 6           Received letter stating we were selected for further processing.

February 7          Place a call to the field office. Talk to the LO told it looks like we qualify for the max loan amount in our county, but all things not finished and it is not a guarantee to loan yet.

Child Support, A missing paystub, alternative lines of credit, $30 check for credit check submitted, homebuyers course taken

USDA sent letters to verify employment etc, full credit ordered, whatever else they do...

We start looking for houses!!!!!!

February 13        Apparently my credit had to many derogatory items that had not come up in the initial quick credit review for pre qualification. Even though I asked someone in the office if small thing could be paid, and they said yes, as long as it wasn't thousands of dollars...that was not true. I had less than $2000 spread over 7 charge offs, and this made me ineligible.   My husbands single collection account showing is paid off.
However, we were able to remove my name from the loan and move forward with processing using just my spouse as the holder.
USDA LO informs us that we will most likely lose $20, 000 to $30, 000 of the max purchase price due to my income being removed, but it will still be used in figuring out how much our payment will be.

February 18       We see a house listed for $ 179, 900 that is just fine for our family, has everything we are looking for and submit an offer for $150,000, as our lowest max purchase price would be $149, 900 hopefully more

February 19       The realtor calls us with a counter offer of $165, 000 and we inform her that we can not change or move on this until the office opens and we can get a better idea of where our max loan amount is.

February 20       The realtor informs us that another offer is coming in on the property. She can't tell us what the number is, but will update us if the seller accepts the other offer.

I am so frustrated that another person is looking at this house and I can't move on it without putting us at risk.

Did I make a mistake putting an offer on this house before having the mortgage ready to go?

Should i be thinking this realtor who is a dual agent is just fooling me, because she is aware of how much we love this home?

Will these panic attacks end soon? ekkkkkk Why is today a holiday

Thank you for listening...

Re: Questions and Answers USDA Loan

Booner72 — Mon, 20 Feb 2012 19:02:59 GMT

Well, hang in there. The panic attacks will stop if you use really good coping skills, though I tried that and it didn't work. I was a hot mess from May til August of last year.

If this house falls through, then I strongly encourage you to get your own agent. I used the listing agent for a short sale and it was a huge mistake. The only thing that came out of that 3 month disaster was that I got a good LO referral from the agent. We ended up walking bc the amount the bank offered on the short sale was 30K higher than what we put in. (I'm not saying this house WILL fall through, just sayin, if it does....)

My LO also said (and I've heard it said other ways, and I know it to be true) "You don't find the house, the house finds you."

Just read posts here, keep busy, ask questions, be as prepared as you can, and definitely have them tell you the max amount you are approved for. I would also advise you to have a preapproval letter ready to go (knowing how much you are approved for) before you put in any other offers. There are lots and lots of posts of others going through or who have gone through the USDA home buying process. it definitely adds some stress if you have to wait for the funds.

Good Luck!!

Re: Questions and Answers USDA Loan

Anonymous — Mon, 20 Feb 2012 19:19:13 GMT

I am hoping to be eligible for a USDA loan this summer. I have a few questions.

What are your credit scores?

The $2000 in charge offs, were those paid charge offs? Would that have made a difference to the lender do you know?

Re: Questions and Answers USDA Loan

Anonymous — Mon, 20 Feb 2012 19:37:25 GMT

Thank you so much Booner72!

I have found these forums to be so helpful. I am so excited every time I see a new post about one of these loans, with a happy ending!

Re: Questions and Answers USDA Loan

Anonymous — Mon, 20 Feb 2012 19:51:21 GMT

Hi Yodafer,

My credit scores were mixed with the full pull 586 584, my husbands were 626 620. However they were very different on the quick first pull mine was around 600 and my husbands was 638 I am sorry I don't know the exact as it was just told to me over the phone.

We had to have and show 4 open lines of alternative credit in good standing no lates for the past year to make up for those scores.

I am unfarmiliar with the difference between charge offs and just collection accounts. If there is a difference they are marked as collections accounts, and no they aren't paid on my credit. I was told that we could just wait 6 months to reapply with me on the loan after I paid those off, but we are in a situation and need to move asap. I would not qualify any other way. They have to be paid 6 months before you apply, is what I took from that. Hope that helps.

Re: Questions and Answers USDA Loan

Anonymous — Mon, 20 Feb 2012 20:36:09 GMT

Ohhh I forgot to mention, and this might seem like so silly. I asked the LO well why can't I just pay these now, and get them out of the way and move on with the process. The answer was obvious, because that does not show you are willing and able to make timely payments to your creditors. I said Ohhhhhh yeah that makes perfect sense.

Re: Questions and Answers USDA Loan

Anonymous — Tue, 21 Feb 2012 04:37:57 GMT

A few hours ago the realtor called me. She asked for a pre approval letter with a number listed, like how much we qualify for. She said the seller would like to have that with the offer, but I don't have anything like that, should I? She also said that there is another offer coming in in the next day or two. She also told me that the seller would prefer a family to get in there, which makes me squeal with joy! She also put me in touch with a LO who could get me a pre approval...but he couldn't. I taught him a little about the direct loan. He thought all of the USDA loans had to some right from banks, and wondered how someone could possibly work directly with a field office..lol. It made me feel so smart I am so sleepy , but I just can't sleep! All I can do is sit here watching/creeping these boards to find out everything I can about this loan. I think I may have developed an ulcer, and I am supposed to have an ekg done tomorrow for new panic attacks and stress...yayyyyy home buying process!!!!

Re: Questions and Answers USDA Loan

Anonymous — Tue, 21 Feb 2012 13:23:17 GMT

I dont know muich about the home buying processs but I am not surprised the seller wants a preapproval - they dont want to reject another offer in hopes that you will get approved - with a preapproval letter it shows them you will most likely get the funding to close.

Re: Questions and Answers USDA Loan

Anonymous — Tue, 21 Feb 2012 13:50:15 GMT

Ok so I got in touch with the LO and he won't give me an exact number! He said he has to go over everything, and since the mail was tied up yesterday he won't have those letters I submitted till tomorrow or the next day. I am so upset, I just know this is going to make me lose this house. SO SO Upset. I asked about a pre approval letter, and was told yes you will get a certificate, but not until everything is here. omg omg omg, I am losing my mind! My dad told me I already shot myself in the foot for saying I am so in love with this house, and no other will compare. He also said I am looking at this the wrong way. I think I am looking at it just right. :/

Re: Questions and Answers USDA Loan

Anonymous — Tue, 21 Feb 2012 16:31:46 GMT

=( stupid federal holidays. Your dad is right, they always say to not fall in love with a house. I'm not even in the market and already found "my house". I know the feeling. Hanging in there. If he is in the same area as you I would guess he'll get the paperwork today?