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USDA direct loan funding

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Anonymous
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USDA direct loan funding

So I just received my COE and it says that the approximate wait until funds may be available is 60 days. Does anyone have any idea when funding will be released? 

Message 1 of 11
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Anonymous
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Re: USDA direct loan funding

I would recommend asking your loan specialist about it. They probably know better than anyone what you might expect. I have searched and searched online and can find no information anywhere about the timing for USDA funding.


@Anonymous wrote:

So I just received my COE and it says that the approximate wait until funds may be available is 60 days. Does anyone have any idea when funding will be relea


 

Message 2 of 11
Anonymous
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Re: USDA direct loan funding

@Anonymous 

Hello, Ive been going through all of your post and replies like a stalker lol because you seem to have a lot more experience dealing with usda and dealers than most on here. I've been obsessed with finding information and experiences with USDA loan process. I'm wanting to try for a usda guaranteed loan instead of the direct loan. My question for you is was your land purchase included in your loan? I'm in south east texas and looking for land and hopefully build a home or modular home. If I could get my land and home both financed with a usda loan that would be amazing. Also, my income is around 50k yearly and I'm worried I wouldn't be approved for much. Thanks in advance. 

Message 3 of 11
Anonymous
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Re: USDA direct loan funding

@Anonymous Hi there! I hope that some of the information I have posted has been helpful to some degree. To answer your question, I was extremely fortunate to have a kind and loving brother who gave me an acre of his land on which to put my new home (which I am STILL waiting for, by the way!) so I did not have to deal with getting financing for the land. I do know, however, that you can include the land in with the home on your USDA loan whether direct or guaranteed. The issue, as you have already guessed, is getting approved for enough from USDA to cover both. Part of the reason it has taken me so long to get this thing done is that when I first applied, they didn't want to approve enough to purchase ANY kind of home that would pass their inspection. Through research and sheer tenacity, I found out that they had not grossed up my income which should have been done because I am retired and all of my income is retirement income and not taxable. After they adjusted for that, it increased my loan limit but not to the amount I needed for the home I wanted to purchase. Sooo...I had to go through the process of refinancing my car to lower my DTI enough to compensate for that. FINALLY, after all of that, they approved me for $141k and my income is much less than yours. The loan will cover the home, land improvements, decking, etc. The items that I am going to have to pay out of my own pocket are the carport or garage, fencing, any landscaping I decide to do and things like that. Just so you understand, even though the land was a gift from my brother, I had to use it as collateral to secure a loan for the amount I mentioned above. In other words, if I default on the loan, the government gets the land AND home plus all of the items I pay for out of my pocket as they are considered permanent and become part of the real estate and also included in the taxes. It also means that the anount they figured for real estate taxes for escrow purposes will go up immediately once the fence and garage are installed which will, in turn, increase my monthly morgage payment. I hope all of this isn't too confusing. It has definitely been a learning experience for me! I wish I could be more encouraging but USDA has pretty stringent requirements and they follow the rules to the letter. That doesn't mean they are not subject to making mistakes as I have described but you have to be on your toes to be able to know when an error is made. I wish you much luck in your own pursuit and if I'll be glad to answer any other questions if I can.

Message 4 of 11
Anonymous
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Re: USDA direct loan funding

@Anonymous Thank you so much for taking the time to explain your experience! I really appreciate it. Your input on these forums has been so helpful. I thought by now you were just about done already. I hope you get in your home soon! After reading your reply I feel much more hopeful in qualifying for a good amount. Hopefully enough to buy an acre and build my home. I've found a few listings for less than $12k which is a good price around here so hopefully I'll be able to fit everything into whatever I qualify for. I'm looking into modular homes as well as manufactured homes but Ive heard so many horror stories about the quality of material and construction with these types of home and it has me on the fence. It's overwhelming trying to research manufacturing companies. That might be my only option however, since building from scratch is so expensive. I'll be applying with a lender in the next month or so. Again, thank you so much for your advice and help. Please keep us all posted on your progress and hope you're in your home very soon! 

Message 5 of 11
Anonymous
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Re: USDA direct loan funding

Update 

I still haven't heard of anything about funding availability, the only thing I was told was that they didn't know when funds would be available. I decided to go with the guaranteed loan instead, the sellers didn't want to wait that long. I found a home and now am just waiting the appraisal and for underwriting to finish processing everything. 

Message 6 of 11
Anonymous
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Re: USDA direct loan funding

@Anonymous 

I'm going to try for a guaranteed loan as well. Do you mind telling me what lender you used? I've only found one lender so far who will do usda. Metroplex mortgage services. I was told funding available and if I wanted to go directly through them "direct loan" they would have plenty of funding available just turn around time is longer. I was told his by both the lender and an actual usda representative. How has your guaranteed loan process been so far? Any hiccups?

Message 7 of 11
Anonymous
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Re: USDA direct loan funding

It was a local lender that was referred by my real estate agent, they seem to be on the east coast. My LO was pretty quick with the preapproval and getting all the paperwork I needed to sign. I was able to upload all of my documents online, that was easy because I already had everything in one place from applying for the direct loan. That was my plan but the sellers wouldn't wait that long. Now it's just a waiting game to see if they need anything else from me. I have my fingers crossed since everything was approved for a direct loan that the guaranteed should go through ok.

Message 8 of 11
Anonymous
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Re: USDA direct loan funding

Oh ok. Well fingers crossed for you🤞Keep us updated

Message 9 of 11
Anonymous
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Re: USDA direct loan funding

@Anonymous I wish I could say that I am already moved but the fact of the matter is that the foundation was just poured yesterday and as my luck always goes, we are forecast for rain 3 days this coming week so chances of my home being delivered any time soon are slim to none. During winter months, once the rains start, the ground quickly becomes saturated because the lack of heat keeps it from drying out quickly. I know the areas in and around Houston are similar in that regard except that the soil down that way drains better than where I am. I lived in Houston and southward in Rosharon for many years before returning to my stomping grounds in the northeastern part of the state. Anyway my lot is a mess right now because the ground was so soft that the skid steer they use to move the dirt around and dig the trenches for the runners just tore it up. They managed to get the concrete poured but they were not able to smooth the dirt out very well. The more they tried, the worse it got. The concrete should be set by Monday but I'm pretty sure the transport company won't be able to set the two sections of the house on it without getting everything bogged down in the mud. Sooo...I'm moving along at a snail's pace right now. 

 

As for manufactured home builders, I did a HUGE amount of research on all the major players which included reading reviews, visiting dealers' lots and touring the homes and getting feedback from people who have lived in them. I narrowed my top choices to 3 builders: Clayton, Solitaire and Champion. I had my heart set on Solitaire at first but I learned a few things about them that changed my mind though I still regard them as a quality builder. My second choice was Champion. Champion used to build only stick built homes but branched off into manufactured and modular structures as well several years ago. I finally went with them. Depending on your location, they have a pretty large variety of homes with some really decent upgrade options. My home is a 3/2, 1699 sq. ft., with wood burning fireplace and not quite but almost all of the bells and whistles. I elected to have 6" exterior wall thickness rather than the usual 4", upgraded insulation, radiant roof barrier, upgraded all stainless premium appliance package and so on. My master bath even has a cavernous 48"x72" tiled walk-in shower with rain shower head and it has a separate commode closet. There is a walk in pantry just off the kitchen along with a mop sink in the laundry/utility/mudroom. All walls are tape and textured drywall with bullnose corners and all of the closets are walk-in and have wooden shelves and rods to hang clothes on. It's a very nice home. 

 

Just so you know, I think all 3 of these builders, with possibly the exception of Solitaire, also produce modular versions of their homes. I have to tell you that many people still (unjustifiably, in my opinion) snub their noses at manufactured and modular homes. With all of the modern building methods and automation they use and with the controlled environment in which they are built, some of them are better built and stronger than stick built homes. You still can't get a manufactured home with a brick fascade but other than that, if you maintain one as well as you would a brick, stick built home, it will most likely last a lot longer than you will. So many people in this country, myself included, just can't afford to shell out $200-$500k for a place to live and with rents going through the roof, this was my only alternative. Manufactured homes are not the mobile homes of old and I wish there was some way to get rid of the stigma that has always been attached to this type of structure. 

 

Please let me know what route you decide to go and if I can answer any questions regarding manufactured housing, I'll be more than happy to help or set you on a path similar to the one I took so you can research for yourself. Good luck!

Message 10 of 11
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