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JRomo81

USDA Guaranteed Loan questions.

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Hello everyone long time lurker first time poster.

 

Okay a little background. I applied for a mortgage loan on July 1st, I didn't think I would be approved and some loose inhibitions and frustration with current rental residence convinced me to give it a shot. Surprisingly I was pre-approved and looked at some houses before I got my hopes up I asked to go further along in the credit process before I became serious because I still didn't believe I was approved. The mortgage lender asked me to bring in W-2, pay-stubs BK discharge papers, etc, I was approved for around 150k, she said everything looked fine and I could proceed. Our realtor found a house we were interested in and put in a bid and received a counter that was acceptable so we went ahead and accepted it, looking up the house online it now says active continent or contract accepted depending what site I look at. It is a short sale home.

 

I was discharged from a chapter 13 BK filed July 2009 and discharged October 2013, My credit scores are EX 674 TU 695 EQ 702. My current debt is about 800 dollars of 10000 credit available to me. I have been at my current job as a alcohol distributor for a year this month and gross about 45k a year. Prior to this job I took a year off from work to care for my newborn daughter. The job I had before I quit to stay home with my baby girl was in the same industry but at a different company for less pay. I have a car payment of 390 a month that I bought 6 months ago. All the credit cards I have are also somewhat new since I didn't apply till after my BK was discharged. I pay 800 in rent, but its someone I'm related too and he prefers cash so I don't have a paper trail for rent, not able to use it for documentation although my banker didn't ask for that info.

 

The USDA eligibly map in the area that the home I big on is due to change OCT 1 and the it appears the house will no longer be in a eligible area. My questions for the experts is how does this look? Am I getting my hopes up for nothing? I still can't believe this is happening, I feel like the rug will be pulled out from under me, also will I have to close my oct 1 since the eligible map is changing?

 

Thank you

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No one here is an expert on USDA, your question is specific... your best bet is to ask your loan officer. Congrats on the approval though!! Just thought about the fact that it's the weekend- I'm guessing you'll be doing a LOT of googling. Maybe just maybe since you're already in contract for the house, it will be okay, then again, maybe not :-/

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Oh believe me I've been googling plenty hehe, I've just read some conflicting information when googling there is lots of discussion about these topics.

 

I had emailed a few LO before I applied one said I had to wait till oct/14 one said don't bother till oct/15 and the one I applied with said just go for it and see what they can do for me. Feels good to have hope again.

 

Seems like I'll just have to be Patient and just wait, maybe I will be approved or maybe not. Thank you for the reply

 

 

Sent from my iPhone using Tapatalk

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Because it is a USDA Guaranteed loan you will both have the guaranteed guidelines as well as the banks overlays (tougher guidelines the bank adds to satisfy their investors)

I see two red flags here - the first the BK per the guidelines you have to be discharged for 36 months before getting a loan

http://www.rurdev.usda.gov/supportdocuments/ca-sfh-grhunderwritingguide.pdf

 

the other would be the year off - while less likely to be a deal breaker it would be something an UW could use against you if they didnt like the overall profile of your loan application

 

What did they tell you regarding the BK (I understand it is 13 but the guideline do not specify)

 

B

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They just needed to know if the last 12-18 payments were made in a timely manner and possibly having to wait a year from actual discharge.

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Thanks Brian, see what happens Its unexpected to have gotten this far and if it's denied I'll know what options I have as far as what I need to do or how long I'll have to wait.

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Well I got the approval letter today from the sellers/Wells Fargo. Have to set up utilities tomorrow for a home inspection next week hopefully .

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I had to drop off an earnest money check today at a title place.

I was curious for anyone familiar with the buying a short sale with USDA process, if the next step is getting USDA approval ?

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193 for inspection today and all was great. Appraisal going to be ordered on Monday

 

Ran my credit again it improved a bit since I first applied and the middle score bureau changed from transunion to equifax. 699 less than a year after Chapter 13 discharge

 

Sent from my iPhone using Tapatalk

Edited by JRomo81

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