My fiance and I are buying our first home and after months of searching, have finally found one. He has been approved for a USDA loan, but my question is, how hard is it for a house to be approved for one? The place we found sits on alittle over 3.5 acres, built in 1992, has a garage under 1200 sq ft and has been on the market for almost a year now. He works construction and will be looking at lay off here in a few short weeks. We really don't want to drain our accounts to get the closing cost paid so are there any other options we could look at? And last but not least, we have been told by one realtor it needs a new septic (I understand it has been setting for almost a year, but I find it hard to believe a septic has gone THAT bad in a 19 year old house) but the realtor we have chosen to go with knows nothing about that situation (as in, has never heard the place needed one). Ok, after all the said facts, o, and the bank is asking 85,000 for it (it is bank owned)....along with all the questions, any advice too?
You can also try to have the seller pay for the majority of closing costs. Talk to your loan officer about the repairs and what you can finance into the loan. Just remember you cannot exceed the houses appraised value plus their fee (102% or 103% of total appraised value). Again this is under the assumption that you are going with the guaranteed loan. I am unsure on the direct loan product they offer.