USDA Direct w/650+ midscore
Posted 09 March 2012 - 09:29 PM
I am sorry you're having such a hard time with your office. I can assure you it is worth it in the end. I am a bit further in the process than you are and I can tell you from experience you will continue to wait. The entire process is VERY slow. Each step you'll be waiting as you have been. Right now everything is done and I still have to wait 3 weeks to close. Every single inspection has been done, everything signed. The only thing left is title and they already have the preliminary done this morning. We had the certificate before we put in an offer. Our offer was submitted February 2nd. We'll be closing almost two months after putting in our offer. USDA is a great program but they move at their own pace no matter what you are going through or situation. I am very blessed and the guy running the program at my office is VERY nice and let's me email him almost daily asking for updates without getting mean about it.
Keep your head up. The process is brutal but in the end it will be worth it.
Posted 13 March 2012 - 06:52 PM
Edited by gabbyraja, 13 March 2012 - 06:58 PM.
Posted 23 March 2012 - 02:31 PM
Just as dh was signing the offer an email came in from the sellers' agent on the too high taxes house. In order to afford the house, with such high taxes, they would have to lower the price on the house by 30 grand. We assumed they would never go for it and withdrew our offer. However, they will do some kind of special deal with us where they offer a land contract on the adjacent 1 acre to make up the difference in price... We would have to sign a letter of intent until the deal closes on the house (due to the USDA's stipulation of no new debt until the house closes). But the land contract is for a low price, 2% interest (not bad at all) and a 10 yr balloon. It would increase our housing costs to what we're currently paying for rent (and have been paying for rent for 2.5 years), so we would not have any difficulty making the payments, but we were looking forward to some more savings after buying whichever house... We're strongly considering it. If the seller on the offered house doesn't want to deal, we'll go for the LC. The place was super cool. 1500 sq ft with a full finished basement, 5 bedrooms, 2 fireplaces with inserts, on a small lake, 4 acres JUST outside the city, totally secluded yet close to everything... But the offer house is 1846 above ground, 900 below, and we have plans to convert the 2.5 car garage to a family/sun room. There's a pole barn just off the house we can use for a garage. It's on 8.51 acres, fruit trees, creek on the side of the property, 15 minutes from dh's work... And LOW taxes. Cross your fingers for us that one of these deals works out, and we're not thwarted on both by the USDA. PLEASE!
Posted 24 March 2012 - 07:57 PM
Posted 02 April 2012 - 09:12 PM
In addition we have to 'provide the necessary information so that an exception can be requested from the State Office. As discussed your request must “provide actual utility costs for the last 12 months. Also you must address the age and condition of the home, and the ability to pay the higher costs associated with the larger home.”' Thing is, 1. the house is not larger than what we are renting, and the costs can not POSSIBLY be higher than what we are paying now, so we're good to prove our ability to pay the "higher costs" with our current utility bills, and 2. I have NO idea what "address the age and condition of the home" means. It was built in 1986, which is not old, and not new, so... And they said it was a very nice house in good condition when they checked it out, so...? At least this handler is MUCH more helpful than the last one we were trying to work with. He's just very busy, so slow to respond.
Also, for those of you confused by the sq footage limitation, here is the link to the USDA document our "handler" (as I'm calling him) sent us with the "new" requirements about sq footage to be considered "modest." Apparently this only went into effect in November of last year, but is all across the country, not just in MI. https://docs.google....6SlZjRXZuUTdPUQ
Posted 03 April 2012 - 06:51 PM
"The house at XX road was built in 1986. It has been upgraded with an environmentally efficient high efficiency (95%+) propane furnace, a lopi wood stove for supplemental heat, and electronic ceiling fans for heat circulation. In fact, Energy Efficiency was planned for in the house's very construction, built with 2" x 6" walls containing R/38 insulation, ceilings containing R/50 insulation, and Anderson high performance casement windows.
Our current rental townhome is 1452 square feet of finished space, with a 700 square foot partially finished basement which we do heat and cool. We have paid almost $3,000 in the past 12 months for electricity in this 2,152 square foot space. Heat has cost us only $800 (amounting to only about 1 tank of propane), but water and sewer cost us $1080. In this home we would completely eliminate the water/sewer bill due to it having the well and septic, and we plan to save the money instead for well and septic maintenance and repair. We understand that septic should be pumped every 2-3 years, wells should be tested periodically, and both require repair and/or replacement in the thousands of dollars at some point in their lifetimes.
In addition to paying less for utilities in this home, the house payment alone will be $200 per month lower than our current rent. We will also eliminate the $360 per year we currently pay for parking and garage fees, and $300 per year in rental insurance."
Thank you for the anticipated advice, imaginary reader.
Posted 03 April 2012 - 07:08 PM
Posted 26 April 2012 - 09:22 PM
So, we went back to the very first house we saw. It isn't big enough as is, but we'd been planning on converting garage space in the last couple of houses we offered on, so we reevaluated if we could do this here and it would work out great. It's 1716 sq feet, 2.69 acres. Fits all of their requirements, no explanatory letter needed. It's 15 minutes out from the city, our distance limit for acceptability. It also has a pole barn we will be converting to a studio in-law apartment for my mother. Woohoo! It has a bad well and septic, we learned after they'd been inspected, but seller will repair/replace, so we're good there. The regular inspection turned out great. Very few problems, and they are all rather low-cost. So, we believe she will fix them as well. We're getting a little excited, at last. It might actually work this time. We MIGHT be in a house in about a month. Keeping fingers crossed...
Posted 03 May 2012 - 01:59 PM
Plus, in order to do the one little fix it takes they have to remove the above-ground pool to get at the holding tank under the pool. She won't have it reassembled afterward. One of the reasons I consented to this house that is too small and really meets none of our needs as-is, is that it had a ready-to-go pool for the kids! It would probably cost more to get someone to come out and figure out how to put it back up then it would to just buy a new one! I'm SO POed right now! We're talking about >$150, 000 houses here. They're not total pieces of crap. It shouldn't be so hard to find something acceptable. And truthfully, it wouldn't be if we didn't have to do USDA. fitting them into USDA rules ruled out our top 10 choices in our price range.
eta: crap houses in our area are like 60 grand and under. In MI 150 is pretty nice, actually. Usually.
Edited by gabbyraja, 03 May 2012 - 02:13 PM.
Posted 04 May 2012 - 07:19 AM
Because, despite saying she'd do whatever to get it sold she no says she doesn't have enough money to do a whole new septic so if they say it needs a whole new septic we have to walk away.
Plus, in order to do the one little fix it takes they have to remove the above-ground pool to get at the holding tank under the pool. She won't have it reassembled afterward.
Two things: our house, it needed a new septic as well. The funds to pay for it were paid out to the septic company at closing. I don't know if this is standard, but I'd be asking the LO and realtor? We also sold a house, it needed a leach field, and same issue-it was paid out at closing. No one ever paid out of pocket for these repairs? All receipts were turned in and then paid out?
Second, the pool. Is it in the contract? If you bought the property w the pool, she has to compensate you or replace it, I believe. But I'm sure someone more knowledgeable will be able to answer...
Edited by twizzle, 04 May 2012 - 07:21 AM.
Posted 07 May 2012 - 11:25 PM
Posted 07 May 2012 - 11:44 PM
Posted 08 May 2012 - 06:39 AM
I don't have clue one about septic tanks (or rural areas for that matter) but is it considered okay to put something heavy like an above ground pool right on top of a septic tank? And with so much land why would they?
It's definitely not okay. Not on the septic or leach. But I'm guessing they didn't know this (or didn't care?). I imagine they put it there because it's flat. They would have leveled the area when they installed the system. But who knows.
Sorry to hear about the complications, gabbyraja. Hopefully it works out.
Edited by twizzle, 08 May 2012 - 06:44 AM.
Posted 09 May 2012 - 09:59 AM
Posted 16 May 2012 - 05:50 PM
Posted 28 May 2012 - 01:30 PM
Edited by gabbyraja, 28 May 2012 - 01:32 PM.
Posted 30 May 2012 - 07:50 PM
We found the stumbling block, as we always do. The taxes are just high enough that, along with the lowest insurance quote I've been able to get (and I've checked everywhere I can think of) the monthly payment would be $16 higher than the max payment they will allow. The USDA guy hasn't told us yet that the deal is dead, and I'm playing every angle I can, but I'm bracing my heart against having to start all over again. Sigh...:_(
Edited by gabbyraja, 30 May 2012 - 07:51 PM.
Posted 31 May 2012 - 12:36 AM
Posted 31 May 2012 - 12:06 PM
Edited by gabbyraja, 31 May 2012 - 12:07 PM.
Posted 31 May 2012 - 12:26 PM
Posted 31 May 2012 - 05:12 PM
Edited by gabbyraja, 31 May 2012 - 05:13 PM.
Posted 04 June 2012 - 10:30 PM
Posted 11 June 2012 - 09:45 AM
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