USDA Direct Loan Questions

[Anonymous]

I have a few Questions about the USDA direct loan. One is can you buy A auction house (Auction.com type of house) or is there certian houses your just not allowed One home I'm looking at is on that website but i found it on Zillow and was wondering if it was possible to buy one of those houses? I know it's in the eligble USDA area and under 2000sqft. My next question is about repairs and closing cost on homes how can those be rolled in to the loan? And Hows all the subsidys work and when do those get applied to the loan finally what is the next steps after receiving our  coe? Sorry about sounding like a rookie it's my first time home buying and so far going though the process has been stressful and a whole lotta waiting I appiled in early December and looks like in a week or two we should receive our coe so we can offically home shop and wanting to know more and the types of homes and also what the steps after receiving our coe. Thanks for any answers you can give!

[me12345]

The USDA loan is more complicated loan then most, therefore it dose take longer to close then most loans.

Buying a house at Auction, may not give you the time you need to close. That would be determined by the Auction company.

USDA property guidelines are unique in that they have specific restrictions other that geographic. You must consult your lender as to what is allowed.

USDA is also very unique as far as closing costs go also... USDA is the only program that will let you "Roll" the closing costs into the loan amount AS LONG AS the appraisal comes in higher than the sale price. You call "Roll" your closing costs in as long as you DO NOT exceed the appraised value.

I hope this helps...

Thanks,

[Anonymous]

You can purchase usda homes and from my understanding assume the loan. Here is the link: https://www.resales.usda.gov/resales/sfhPropertyMainAction.do?pageAction=SFHSearch&_MenuAction=Yes
As far as the COE... It will tell you the amount you're approved for and that's it! I found out after I was already under contract and right before closing what my actual payment and cost is going to be.

Make sure you have a great agent that knows what they are dealing with. Many real estate agents have never seen any approval letter like that and don't know the xtra stuff that may be required in closing. Most all agents assume its guaranteed. My agent started questioning the whole thing and was in disbelief about some things that were required. I had a construction package so it may have been different.
The best person to answer any questions is your loan person on your COE. I found that they are over worked and in my case it was easiest and faster to get everything done through email.
Good luck on your house!