USDA Direct w/650+ midscore

[gabbyraja]

FWIW, one last update. The stated ir was 3.125%. We were subsidized down to 1%, but that was a great rate anyway!

[ChrisT]

We bought a house!

 

Closing went smooth as a baby's butt and we grilled the sellers on all kinds of things like what the neighbors are like, can you hear a lot of noise from the soccer games at the highschool behind the house (football games, with all their night-time noise, are held across town, yay!), etc. They were very amiable and told me to email any time I might have questions.

 

It's got an acre and a half, 95% enclosed by huge trees and bushes so VERY private, literally on the other side of the line from town (so we're "in the country"), woods on one side, open field across the street, neighbor that pretty much keeps to himself on the south, and the highschool behind the 100 feet thick wall of cedar trees (which houses an Olympic-sized swimming pool that is open to the public). There are a few maples in the front, and in the back the shade trees are black walnut trees everywhere, which most people hate, but I love. They make a great syrup in the spring (like maple, but nutty), and the hulls are great for ridding people and animals of parasites. Plus, because it's so close to town (and only 15 minutes from the city, btw) it has a well but uses natural gas and has cable access (means super cheap utilities).

 

Took the kids over after closing and roasted marshmallows, on this near-100 degree day, and played on the slip n slide. Good times...

AWESOME! I'm so happy for you. Not to take away from your happiness but 7/16/2012 we got the approval call. I continued to call them and stay on their butts at first we had a gentleman who worked Tue-Thur working on our app, after he told me he didn't have a response from our landlord or my employer I got the area director got involved because I had talked with both my employer and my landlord and they had sent the letters back over 15 days ago he then told me another lady would take our case, I called her and I was told that it wasn't her but another lady that had our app. After numerous calls we finally got the call 7/16/2012 so for everyone reading do not give up easily. We have found a newly built home that's in a eligible area, under 1800sq/ft and within the price range. We have the owner writing up a contract for us and hopefully will be signing it within the next day or two. Gabby if you have a second can you go over your entire process for me? I know there is something about a 1st time home owner class and from what I have read you NEED to take this ASAP to get your ducks in a row so nothing can slow the loan process down especially with a lot of them getting low on funds. I've read that some people had to go in to a interview in order to get the "certificate of eligibility", we simply went in and picked it up, my brother in law was simply mailed his so I'm guessing things have changed/ are different in different areas...been pulling information off of FICO.

Edited July 18, 2012 by ChrisT

[gabbyraja]

Congrats! You're 1/8 of the way there!

 

Dh did have to take a homeowner's ed class. He could choose a local acion agency, and take a 6 hour class over several weeks, or go to the local office for a 3 hour class. He chose local office. He was the only one signed up, so the guy basically tailored it to his situation. He spent an hour watching 2 videos and asking any questions he had.

 

Essentially, the summary of our process went like this: I took in our app and all docs, emailed a few things they forgot they needed , and they sent back the cert of elig by email. We then found a house, did the inspection, gave them the survey, insurance quote, etc, and they ordered the appraisal. Appraisal came back and they secured the funds and set a closing date. Sounds quite simple, doesn't it? If only it hadn't taken 5 pages to actually go through it...

 

GL!

[ChrisT]

After the contract is signed what exactly needs to be done? I'm guessing the homeowner class needs to get squeezed in (Does the USDA decide if both you and your spouse need to take the class?), I know there has to be inspections and something about a good faith payment I have heard....Who normally pays for inspections? I'm guessing it still has to be done on newly constructed houses? How did your closing cost go? I've heard some owners pay them and they just add it into the cost of the loan. Should I go ahead and contact my insurance company to see about getting a insurance quote or is there something I have to wait on for that? Sorry for 5 million questions but I do like to have any helpful information. Anymore hoops I'm going to have to jump through that you know of? Lol this is quiet a process. Thank you again for all the information and your time.

Edited July 18, 2012 by ChrisT

[gabbyraja]

Yes, you get in the class. It was offered only once per month here, and everyone on the loan had to take it (I am a sahm, so no income, so not on the loan). The good faith payment, also called earnest money deposit, is something you put down with the offer. Ours was $1000. I'm not positive, but I believe this was the required amount by our title company. Last time we tried to buy a house (8 yrs ago) it was only $500...

 

Anything is negotiable, so you can try to get the seller to pay for anything in the offer. Our seller paid for the survey and the well and septic inspections, though those are something often paid by buyers according to the USDA. We paid for the other inspections; USDA required general (around $400 here), radon ($80)and pest ($65). These are considered closing costs, so when you pay them ahead, they are "Pre-pays" and they are deducted from your final closing costs at the end. If you get the sellers to pay closing that means you'll get these prepays back at closing.

 

I'd wait until you are under contract to get insurance quotes, unless you need it to make sure you can afford the house. They are really a pain in the butt! You'd think your house needs a job at the pentagon!

 

Only hoops are getting that cert of eligibility and getting the house approved. Those (especially number 2) were the worst for us. After the offer is accepted and submitted to USDA the local USDA person inspects it to make sure it qualifies. That's where we always hit a snag... Ask any questions you like! That's kinda why I started posting our whole process, so it could help others. There is NOOOOO info on this crap, anywhere, so I wanted others to know what to expect.

[ChrisT]

Okay well I've been busy calling the USDA trying to make sure we have stuff correct. The "closing guru" at the USDA said they send out the appraisal person after the house contract is signed, I was informed that you don't have do an inspection on the home if it is under 1 year old. The builder told me the house is currently sitting as not complete...something about he hasn't processed the "co" I guess this is something I will be calling and asking the USDA's closing guru.; I will also be asking her about the good faith payment, the builder told me he don't think its required but it makes it look more legit. HOPEFULLY *fingers crossed* we won't hit any snags, the home is brand new, the liveable area is under 1800sq/ft, has a huge 2400sq/ft unfinished basement with 3 car garage, has city water/sewage, and the house should appraise well over what the seller is asking.

Edited July 19, 2012 by ChrisT

[ugghh]

Congrats Gabb!!!!!!!!!!!!