USDA Direct Loan denial question

[Anonymous]

Dan - Point taken, that makes complete sense.  For some reason I was hung up on the 6 month issue and completely bypassed that part.  It would be a much easier process if they could just sit down with us for a few minutes and let us know what steps would give us a good chance of being approved (wishful thinking, I know!).

I emailed a USDA outreach specialist two days ago and he forwarded my questions to a SFH Direct Loan Team so hopefully I will get some answers soon.  Otherwise we will probably just set up payments and hope that gets us where we need to be.. We'll see what they say soon I hope.

[Anonymous]

I'll be interested to hear what you find out. I've read about some people that have able to close without paying off their collections and others that had to pay them before closing. If USDA want's them paid and that means you'll have to wait 6 months, I'd still recommend trying a pay for deletion. That would remove them from your credit report completely.

[Anonymous]

We're kinda in the same boat & looking for answers. I actually just sent them an email this evening to see where we stand. We were denied in April due to low scores. Lack of credit + 3 small collections (2 on mine for $175 & $130, 1 on his for $40). We were told to try PFD first then PIF if necessary & wait 6 months. PFD was unsuccessful for his & 1 of mine so we paid them in full, my other one is still pending as to whether they will delete it or not. So...my question was if we can successfully raise our scores above 640 within the 6 months do we still have to wait the full 6 months or will they overlook the collections at that point. Hubby's score is almost there & mine will be close depending on the pending deletion.

[Anonymous]

So we sent the LOE to the USDA office and have been waiting and waiting.... heard nothing.  So we called today and found out that the ONLY thing they are waiting on is a response from our previous landlord (private duplex we rented for 4 years in Oklahoma - we live in Tx now).  They have sent paperwork TWICE and haven't received a response from him.  We called him today and left a message as he didn't answer his phone.  Long story short - we have nothing to worry about as far as rental history with him - but this guy didn't really want to be a landlord.  He is really young (early 20's) and bought the home (duplex) while we had already been there for 2 years and he moved into the other unit.  He basically bought it for the investment aspect, but he is/was an immature, horrible landlord.  I can't believe we are depending on him for a mortgage loan a year later. 

Is he required to respond to this type of thing?  It's frustrating because our credit worthiness basically is only shown through our rental history since we always pay rent first and on time every month.  It would be such a positive for us if he would just respond to show we have an excellent rental history.  Any insight here would be great!

[Anonymous]

@lilpudge - I hope your loan process is progressing well for you.  I know how frustrating it can be and there are so many specific questions that pop up along the way that are so difficult to get answers to.  Hopefully it will work out one way or another for you!!  Stay positive - it will happen sooner or later  

[Anonymous]

i have a question that i hope some one can help me with, i am stressing over everything right now. so here goes my question.  I have been approved for a usda direct loan.  I have found the perfect house and the list price is 72000. i offered 71500. and they accepted, it is also a fannie mae homepath foreclosure, i read that if the house appraises for more than the asking price they will not approve the house.  it is scaring me to death.  Does anyone know the answer to this. please let me know.  Thank you

[Anonymous]

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@Anonymous wrote:

 i read that if the house appraises for more than the asking price they will not approve the house. 

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Where did you read that? I've never heard of that restriction. In fact, I just re-read in the handbook today that if the house appraises for more than you're paying, you can roll in the closing costs. You only need to worry about it not appraising high enough to justify the sales price.

[Anonymous]

how did your process end? I am currently in the same blat! Any advice would be appreciated!