USDA loan guarantee - manual underwrite? rejection? PA

[Anonymous]

I am going to try to keep this to the point. I am a first time homebuyer. My scores are 664, 674 and 640. I am a full time employee with a $58,000 annual salary. I do have blemishes on my credit report as there was a repo in july of 2017 and late payments prior to that. I have not had a late payment in over 2 years. my CC utilization is at 1%.

I am under contract with a house now for $147,500.

I have already gone through the LO underwriting and have been approved for the loan. It went to the USDA  on 10/15 and per my lender " I did not get the approval to send it through GUS so it had to go through manual underwrite. They have the file and hope to have an answer by end of the week."

Closing is supposed be 10/23 (less than a week away) and the current turn times is 4 business days.

My lender has continually assured me that there shouldn't be any problems as this is not a direct loan and just the "USDA Guarantee note".

I am a nervous wreck that it will get rejected, does anyone have any experience with this? Any advice? Everyone keeps saying its basically a rubber stamp for the USDA guarentee but I am a worrier so ive spent the last week searching horror stories.

[chiefone4u]

While nothing is 100% guaranteed, a good LO wouldn't waste their time sending off without being sure it was capable of clearing.

I get the feeling that first time buying is nerve wracking!

We bought our first house using FHA guaranteed loan in February of this year. I was a mess through the whole process, my wife didn't fair much better... divorce was considered by both of us.

We ended up closing a week late because of last minute requests, but we got the loan.

I'm sure you'll be just fine. Make sure any delays are not because of you not responding in a timely fashion.

Best of luck! (and enjoy your new home)

[Anonymous]

@chiefone4u  Thats what i keep being told. My LO has 20+ years of experience so i am hopeful this is the case!

it really is and everyone says "relax, it will all workout" and the whole time your stomach is doing flips lol

oh wow! i cannot even imagine that! My fiance is not on the loan so its just little ol' me but he has been super supportive luckily.

i have been doing my best to make sure i respond and answer with everything quickly. During my bank's underwriting, they asked for letters explaining any issues as well as got a reference from our landlord.

Did they ask you for more than just what your LO's UW did?

[homeloanexpert]

I find it strange that the lender was not able to get a GUS approve/eligible with those scores, Either way, it appears that the lender has approved you on a manual underwrite and is going through the formality having to submit it to the USDA for loan commitment on a manual as well. 

As long as the lender has follow the guidelines, there should be no reason that USDA will reject your loan. If you find yourself being denied by the USDA, all is not lost. Your LO should be able to find another program for you like a DPA to help you close on this deal. Sit tight, be patient. I'm sure all will be fine!

Best of luck to you!