Told I'm Not Qualified for USDA w/o Knowing My Information

[alibaba77]

I've only talked to this lender once and he was sitting on the beach then. I told him my income, that I'm trying to sell my home, and my FICO scores, (TU=670 and EQ=680). I know the area we're looking in is eligible for USDA, it's in WV for goodness sake. He hasn't done any official checking yet, i'.e pulling my credit, verifying my income, etc. Based on the info I gave him, how can he say I'm not qualified for USDA??? What "obvious" factors would disqualify me? The fact that I'm trying to sell a home? My scores?

 

Thanks!!!

[alibaba77]

BTW...let me add this. I'm going through a relocation company as my employer relocated me almost a year ago. My relocation benefits expire in a few months. This particular relo company is known for beating up on real estate agents, mortgage lenders, etc. for discounts but they send these guys clients in exchange. My suspicion is that these agents/lenders are close enough to the expiration now that if they drag it out much longer I lose the benefits and they can charge me full price. If I have the slightest inclination that this is why they're dragging their feet, I'm telling them ALL bye-bye and finding new ones.

[Brian B The Loan Professor]

BTW...let me add this. I'm going through a relocation company as my employer relocated me almost a year ago. My relocation benefits expire in a few months. This particular relo company is known for beating up on real estate agents, mortgage lenders, etc. for discounts but they send these guys clients in exchange. My suspicion is that these agents/lenders are close enough to the expiration now that if they drag it out much longer I lose the benefits and they can charge me full price. If I have the slightest inclination that this is why they're dragging their feet, I'm telling them ALL bye-bye and finding new ones.

The only way would be if your income exceeds the limit allowed for the area - otherwise they were not doing their job and couldnt say for sure.

USDA is the one program that you can make too much money and not be eligible for.

B

[alibaba77]

BTW...let me add this. I'm going through a relocation company as my employer relocated me almost a year ago. My relocation benefits expire in a few months. This particular relo company is known for beating up on real estate agents, mortgage lenders, etc. for discounts but they send these guys clients in exchange. My suspicion is that these agents/lenders are close enough to the expiration now that if they drag it out much longer I lose the benefits and they can charge me full price. If I have the slightest inclination that this is why they're dragging their feet, I'm telling them ALL bye-bye and finding new ones.

The only way would be if your income exceeds the limit allowed for the area - otherwise they were not doing their job and couldnt say for sure.

USDA is the one program that you can make too much money and not be eligible for.

B

 

When I run the numbers on the USDA website it says I'm qualified based on the number of people in the household and the area. How can I know for sure?

[Brian B The Loan Professor]

BTW...let me add this. I'm going through a relocation company as my employer relocated me almost a year ago. My relocation benefits expire in a few months. This particular relo company is known for beating up on real estate agents, mortgage lenders, etc. for discounts but they send these guys clients in exchange. My suspicion is that these agents/lenders are close enough to the expiration now that if they drag it out much longer I lose the benefits and they can charge me full price. If I have the slightest inclination that this is why they're dragging their feet, I'm telling them ALL bye-bye and finding new ones.

The only way would be if your income exceeds the limit allowed for the area - otherwise they were not doing their job and couldnt say for sure.

USDA is the one program that you can make too much money and not be eligible for.

B

 

 

 

When I run the numbers on the USDA website it says I'm qualified based on the number of people in the household and the area. How can I know for sure?

 

That is where to start - try a different lender - this one may not have access to USDA and could simply be pushing you towards something they can do?I am just guessing but there is no way that you wouldnt be eligible for USDA and eligible for FHA the guidelines are very similar (do you have a BK? that is a little different) so if your income doesnt exceed the limit and the area is eligible USDA should be an option for you.

B

[alibaba77]

BTW...let me add this. I'm going through a relocation company as my employer relocated me almost a year ago. My relocation benefits expire in a few months. This particular relo company is known for beating up on real estate agents, mortgage lenders, etc. for discounts but they send these guys clients in exchange. My suspicion is that these agents/lenders are close enough to the expiration now that if they drag it out much longer I lose the benefits and they can charge me full price. If I have the slightest inclination that this is why they're dragging their feet, I'm telling them ALL bye-bye and finding new ones.

The only way would be if your income exceeds the limit allowed for the area - otherwise they were not doing their job and couldnt say for sure.

USDA is the one program that you can make too much money and not be eligible for.

B

 

 

 

When I run the numbers on the USDA website it says I'm qualified based on the number of people in the household and the area. How can I know for sure?

 

That is where to start - try a different lender - this one may not have access to USDA and could simply be pushing you towards something they can do?I am just guessing but there is no way that you wouldnt be eligible for USDA and eligible for FHA the guidelines are very similar (do you have a BK? that is a little different) so if your income doesnt exceed the limit and the area is eligible USDA should be an option for you.

B

 

No BK. In fact, all of the baddies are from 2009 and they've all been settled about a year ago. The main reason for the low scores is no new credit since all the baddies.

 

He's the one who recommended USDA since I have an FHA now on the house I'm trying to sell. Part of the reason he mentioned it is because of the possibility of having to short sale it. He said if I buy before short sale it wouldn't be an issue but if I short sale then it would be two years before I could qualify again regardless of the score.

 

I am current on everything and have been since 2009. Even then I only had one 30 day late on the FHA and one 30 day late on the 2nd.

 

The site said I'm qualified for USDA Guaranteed but not Direct. What's the difference?

[Brian B The Loan Professor]

that probably explains it then - you cannot own more than one home with USDA

so if you havent sold you wouldnt be eligible -

 

Direct is a subsidized loan that they (USDA) underwrite and hold - the loan is for really low income

the Guaranteed is done through brokers/banks and does not have the low income portion to it -

 

B

[alibaba77]

that probably explains it then - you cannot own more than one home with USDA

so if you havent sold you wouldnt be eligible -

 

B

 

Even if the other home is on the market?

[Brian B The Loan Professor]

Very rare that you would be eligible

 

See: http://www.rurdev.usda.gov/regs/regs/pdf/1980d.pdf

 

§1980.346 Other eligibility criteria.

 

The applicant must: (a) Be a person who does not own a dwelling in the local commuting area or owns a dwelling which is not structurally sound, functionally adequate.

 

See: http://www.rurdev.usda.gov/va/programs/SFH/Agnes/GRH%20Lender%20Origination%20and%20Underwriting%20G...

 

Applicant must:

 

• BE a U.S. CITIZEN, a U.S. NON-CITIZEN NATIONAL, OR HAVE QUALIFIED ALIEN STATUS

• PURCHASE a RESIDENTIAL PROPERTY THAT IS LOCATED in a RURAL DEVELOPMENT ELIGIBLE AREA

• NOT HAVE SUFFICIENT RESOURCES TO PROVIDE AND SECURE CONVENTIONAL CREDIT (ON TERMS AND CONDITIONS THAT THE APPLICANT COULD REASONABLY BE EXPECTED TO FULFILL) WITHOUT A RURAL DEVELOPMENT GUARANTEE

• NOT EXCEED THE MODERATE INCOME LIMITS BASED ON THE HOUSEHOLD’S ADJUSTED ANNUAL INCOME

• NOT OWN A DWELLING IN THE LOCAL COMMUTING AREA or OWNS A DWELLING WHICH IS NOT STRUCTURALLY SOUND &/or FUNCTIONALLY ADEQUATE

 

The objective of the Single Family Housing Guaranteed Loan Program (SFHGLP) is to assist eligible households to obtain decent, safe, and sanitary dwellings and related facilities for their own use as their primary residence in rural areas. RD Instruction 1980-D restricts applicants from owning multiple dwellings in certain cases, specifically in§1980.346(a), under eligibility criteria.

 

The GRH program considers a property ineligible that has the potential to be viewed as investment property. Generally, borrowers must sell the old (existing) property, meaning at a minimum they have a sales contract with a verified closing date prior or simultaneously to the GRH loan closing.

 

Sometimes, there are circumstances where retaining the existing home (outside of local commuting area) may be acceptable: If an individual or family has been transferred or found employment in a different state, and their old residence is not in the local commuting area of their new employment location, they meet the requirement of not owning a dwelling in the local commuting area. The applicant must…”Be a person who does not own a dwelling in the local commuting area or owns a dwelling which is not structurally sound, functionally adequate.”

 

Example: If an individual or family has been transferred or found employment in a different state, and their old residence is not in the local commuting area of their new employment location, they meet the requirement of not owning a dwelling in the local commuting area.

Example: If the home has documented structure, safety, or sanitation issues, or if it is a manufactured home not anchored on a permanent foundation, it would not be considered structurally sound or functionally adequate.

 

• HAVE ADEQUATE AND DEPENDABLE QUALIFYING (REPAYMENT) INCOME

• HAVE ACCEPTABLE CREDIT HISTORY THAT MEETS RURAL DEVELOPMENT REQUIREMENTS

[alibaba77]

Very rare that you would be eligible

 

See: http://www.rurdev.us...s/pdf/1980d.pdf

 

§1980.346 Other eligibility criteria.

 

The applicant must: (a) Be a person who does not own a dwelling in the local commuting area or owns a dwelling which is not structurally sound, functionally adequate.

 

See: http://www.rurdev.us...rwriting%20G...

 

Applicant must:

 

• BE a U.S. CITIZEN, a U.S. NON-CITIZEN NATIONAL, OR HAVE QUALIFIED ALIEN STATUS

• PURCHASE a RESIDENTIAL PROPERTY THAT IS LOCATED in a RURAL DEVELOPMENT ELIGIBLE AREA

• NOT HAVE SUFFICIENT RESOURCES TO PROVIDE AND SECURE CONVENTIONAL CREDIT (ON TERMS AND CONDITIONS THAT THE APPLICANT COULD REASONABLY BE EXPECTED TO FULFILL) WITHOUT A RURAL DEVELOPMENT GUARANTEE

• NOT EXCEED THE MODERATE INCOME LIMITS BASED ON THE HOUSEHOLD'S ADJUSTED ANNUAL INCOME

• NOT OWN A DWELLING IN THE LOCAL COMMUTING AREA or OWNS A DWELLING WHICH IS NOT STRUCTURALLY SOUND &/or FUNCTIONALLY ADEQUATE

 

The objective of the Single Family Housing Guaranteed Loan Program (SFHGLP) is to assist eligible households to obtain decent, safe, and sanitary dwellings and related facilities for their own use as their primary residence in rural areas. RD Instruction 1980-D restricts applicants from owning multiple dwellings in certain cases, specifically in§1980.346(a), under eligibility criteria.

 

The GRH program considers a property ineligible that has the potential to be viewed as investment property. Generally, borrowers must sell the old (existing) property, meaning at a minimum they have a sales contract with a verified closing date prior or simultaneously to the GRH loan closing.

 

Sometimes, there are circumstances where retaining the existing home (outside of local commuting area) may be acceptable: If an individual or family has been transferred or found employment in a different state, and their old residence is not in the local commuting area of their new employment location, they meet the requirement of not owning a dwelling in the local commuting area. The applicant must…"Be a person who does not own a dwelling in the local commuting area or owns a dwelling which is not structurally sound, functionally adequate."

 

Example: If an individual or family has been transferred or found employment in a different state, and their old residence is not in the local commuting area of their new employment location, they meet the requirement of not owning a dwelling in the local commuting area.

Example: If the home has documented structure, safety, or sanitation issues, or if it is a manufactured home not anchored on a permanent foundation, it would not be considered structurally sound or functionally adequate.

 

• HAVE ADEQUATE AND DEPENDABLE QUALIFYING (REPAYMENT) INCOME

• HAVE ACCEPTABLE CREDIT HISTORY THAT MEETS RURAL DEVELOPMENT REQUIREMENTS

 

The employer relocated me 400 miles away from my home. Wouldn't that make me eligible?

[Brian B The Loan Professor]

Yes but you didnt mention that -

 

I was just troubleshooting why they would say you arent eligible

[alibaba77]

Yes but you didnt mention that -

 

I was just troubleshooting why they would say you arent eligible

 

Sorry about that. It's just frustrating to be getting two different stories from different lenders. Not talking about you. You've given me more info than any of them have given me so far. The referenced information was the best I've seen yet. But even that tells me I am qualified. Hopefully I'll get to talk to the lender Monday and get some idea as to why he's telling me I'm not.

[icehousewvu]

Yes but you didnt mention that -

 

I was just troubleshooting why they would say you arent eligible

 

Sorry about that. It's just frustrating to be getting two different stories from different lenders. Not talking about you. You've given me more info than any of them have given me so far. The referenced information was the best I've seen yet. But even that tells me I am qualified. Hopefully I'll get to talk to the lender Monday and get some idea as to why he's telling me I'm not.

 

Not sure where you are but clear mountain bank is great and they do USDA

[alibaba77]

Yes but you didnt mention that -

 

I was just troubleshooting why they would say you arent eligible

 

Sorry about that. It's just frustrating to be getting two different stories from different lenders. Not talking about you. You've given me more info than any of them have given me so far. The referenced information was the best I've seen yet. But even that tells me I am qualified. Hopefully I'll get to talk to the lender Monday and get some idea as to why he's telling me I'm not.

 

Not sure where you are but clear mountain bank is great and they do USDA

 

Thanks!