topic Re: Experience with owning home and obtaining a mortgage for new home through USDA in Mortgage Loans

Experience with owning home and obtaining a mortgage for new home through USDA

wakefield622 — Thu, 07 Jun 2012 14:59:12 GMT

I am looking for experiences with those who had to sell their home and was able to get USDA Guar financing for their new home.

We are meeting with a realtor to get our current house on the market. Will USDA do a pre-approval with the stipulation that we must sell our home to get financing? I am just hesitant to sell our current home before we are even "qualified" for this type of loan. Also the builder we want to use says we can not be selling our home..it must be sold before we can give them a deposit and start on building. So, looks like renting an apartment for 6 months while the home is being built? Any experiences on this would be helpful!

Re: Experience with owning home and obtaining a mortgage for new home through USDA

jules0580 — Thu, 07 Jun 2012 15:53:24 GMT

Im sure you can probably get a pre-approval for it, but thats not always a gaurantee, however I dont think you can actually APPLY for the actual loan until after your house is sold. So I would assume that the closing and everything would have to happen on your actual home before you could apply, atleast from what Ive read online

Re: Experience with owning home and obtaining a mortgage for new home through USDA

Anonymous — Thu, 07 Jun 2012 16:00:07 GMT

I tend to agree with Jules on this however every persons situation is different. For us we were lucky enough to be approved for our new house with the old house still figured into our DTI. This allowed us to start the building process with our builder. We were also fortunate enough that the house we owned was under contract within 12 days. Down side is we live in an apartment now until the new house is completed in September. Finding an apartment that will do a 4 month lease is not easy and you end up paying out the nose for said apartment.

Re: Experience with owning home and obtaining a mortgage for new home through USDA

wakefield622 — Thu, 07 Jun 2012 18:24:59 GMT

Yikes. No way could we get both mortgages int our DTI and be under their %'s.

We will take it one step at a time!