USDA Direct Loan questions

[Anonymous]

Basements are excluded in the Sq footage right? Even if they are furnished? Like a family room and 2 bedrooms down there? Even if you don't use them as bedrooms? This is the house I'm talking about... http://www.realtor.com/realestateandhomes-detail/854-Howard-St_Otsego_MI_49078_M48202-34085?row=18

[Anonymous]

If it's considered livable space, and I would think bedrooms & a family room are livable, then it counts towards the square footage.

[Anonymous]

That really sucks! BOO!! lol

[Anonymous]

I've read of people being granted larger homes if it's typical for the area and you obtain quotes for a year's worth of utility bills to make sure you can afford to run the house. If your DTI is low enough to handle the cost, you could probably get a waiver.

[Anonymous]

Well, we are going to look at a house tomorrow.. It has a finished basement with two bedrooms and I didn't think it would qualify as I thought they would use the basement as livable space...which would of made the sq footage over the 1800 limit... Per the public records it states it is only 1,356 sq ft and it's the public records that they go by.. and my realtor called USDA to verify and they said they don't use basements and garages for any square footage even if the basement is finished. As long as the public records show under 1800 sq ft then we are all good :-)

[Anonymous]

That's awesome! I'm so glad to hear you have a shot at this house. Let me know how it goes!

[Anonymous]

We put a offer on the house.. We offered $10,000 less than what she was asking and for her to pay closing costs and up to 6% of prepay's.. Should hear back by Monday.. We got our fingers crossed..

[Anonymous]

We heard back about our offer... The lady doesn't want to make any house repairs at all. So we would have to rewrite a new offer saying we would pay the repairs.. Which could be rolled into our mortgage... They are asking 134,900 for the house and her Realtor said that there isn't much wiggle room to go down on her asking price but we are not going to offer the asking price especially since we would have to pay for the repairs... Our Realtor is calling our loan officer Monday to ask about this. Still hoping this goes through as we love this house...

[Anonymous]

I can't find in the handbook about repairs.. UGH!  Nevermind found it..lol

[Anonymous]

Offer didn't go through on that first house.. Lady decided to keep the house but we are under a contract with another house. Have our house inspection and pest inspection on Monday.. Once I get the results of the inspection then our Loan officer will schedule the appraisal.. Yay! Getting closer and closer to closing!