USDA loan process

[sugspc1]

I seem to be having a hard time finding a LO who knows what they are doing with a Guarenteed USDA loan. We live in GA. My current LO is not answering my emails. I'm not sure if he's just waiting for the one dispute to be removed from Equifax before contacting me back or what?  I had another LO said I made too much, but for a family of 5 we are well under the guidelines. We make 83k this year.   Some LO officers said the rental house we have won't let us get qualifed, but some LO say it's fine. I read the USDA and we can have 1 rental home (this was our previous home. We had to move closer to work and find a larger home with the birth of my son 2 years ago)  The rental home is an FHA loan. It's underwater so we can't sell it. We've had renters in it for 2 years. The rent covers the mortgage.  

I'm just so frustrated. I paid off a bunch of my cards and improved my scores. My husbands is good as well. I have scores of 704, 650, 640.  My husband is about the same. Thing is, each LO that pulls my credit claiming they can help drops my scores down!  I've seen 3 LO so far.  This is just crazy trying to even get a pre-approval!!

[JackR1182]

Try talking with a bank that does mortgages (then sells them) that is out in a USDA qualified area.  To give you an idea, I went with First Federal Mortgage (based in Tuscaloosa with a branch in Birmingham).  They do a ton of USDA loans.  So I would try to find a little 1 or 2 branch bank like that, and before you even get into it, ask them if they do USDA loans, then I'd tell them your situation before you roll into the process.  As long as the credit pulls are within 2 weeks or so, you should be ok.  What part of Georgia are you in?

[sugspc1]

Most of them do claim they know USDA loans and have done many of them. I just heard back from my LO and he states because or previous home is now a rental home we cannot get a USDA loan.  From reading online and in the current USDA document dated Jan 2013 I can have 1 rental property with a Guarantee Loan. I'm also contacting USDA myself to confirm. 

I had another LO give me a very RUDE letter back stating he would not work with me because I had another LO offer looking to help me as well. This is just crazy to find a LO that knows ANYTHING on a Guarantee USDA loan.

I live in Acworth, GA and I'm currently renting a home I'm not happy with. I want to purchase a home.  I have a home in Hiram GA that is underwater (FHA) and I have been renting for 2 years. I do get positive rental income but not much. It covers the mortgage payment.  We do not have a lot of money to put down on a home. I'm paying off cards and buildings up are credit each month. Right now our scores are 640, 680, and 700.  I pretty much paid off about 5k of cards to get our credit up and that took all of any down payment. That's why we are looking at USDA with $0 money down. It's MUCH better than FHA. I don't mind moving and driving an hour to work. We did when we lived in Hiram. The reason we are not in that home is because we had our son. We have 3 kids.  The five of us in a 1300 sq. foot home is way too small.  Our two daughters also have Juvenile Arthritius and we needed a ranch home. Fewer stairs for them to climb. 

That Hiram home has had so many foreclosures around it that the value in that area is aweful. I almost want to walk away but I don't want to distroy my credit. I have NEVER missed a mortgage payment or my rent payment.   It seems there is no hope or help for people like me who do the right thing. 

[sugspc1]

I think I finally found the LO that is really working hard on my USDA approval process. At lease he has gotten futher then most of them. Since we have a rental home (was our primary residence) other LO didn't want to deal with us.  So far he's working to see what he can do since I did find a document online that states you can have 1 rental home and apply for a USDA home loan.  

The only issue I'm worried about is my taxes from last years since we've had this rental home. We have losses with seem to hit your debt to income ratio. We are good as we stand now but if I add that in my ratios are too high.  This year we stand to make 10k more than last year. I've paid off so many cards. But we still have a loan and child support we are paying until late next year.   I guess we will see. Hopefully it's good news. 

[jybrown1458]

That's awesome, I'm in the same excat boat. I'm hoping to start the process soon. Any advice, I'm in Houston?

[sugspc1]

Find a good LO that knows what he's doing. I also went online and copied/pasted info direct from the USDA guidelines regarding a rental property. You can ONLY have 1 other property if it is over 50 miles away or it's inadquate. Our LO is working very hard for this loan!  Many LO wouldn't even touch us or help. It took me 4 months to find one. 

Here is the USDA training guide I used. It's very helpful in learning about the Guaraneteed program.  Our home was inadquate for our children since they have JRA. The steps in our old home was too much for them. We had to move and rent a ranch home for a while to establish a rental history. We have a rental history of 2 years. 

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/loanorigination/UW_Loan_Closing_Matrix_Document.pdf

http://www.rurdev.usda.gov/SupportDocuments/MO-2012-GRHLoanTraining.pdf

[sugspc1]

We are in underwriting as of today!  Then USDA hopefully by the end of this week!  Locked in on a decent rate since we had to wait on the title. Each week the rates seem to keep going up. My husband and I are a going stir crazy with how long all this stuff takes!  We can't wait till closing!!

[Freakshow77]

Can anyone answer my question about the max limit on guaranteed ?