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USDA RD Construction to perm

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I want to use USDA RD OTC to buy land and build a house. I cannot find one lender that does this loan. I have talked to USDA and they gave me a list of lenders. 

I called everyone one of them and none of them do this type of loan. 

It's supposed to be zero down but they all want 25-30% down. 

 

Is this an impossible program? 

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Does the program mandate zero down for ALL applicants or is it the standard fine print outlining qualifications? 

 

Not every entity has to participate in programs and it is not at all uncommon for government entities to have outdated lists. 

 

You may well also be caught in the changes that should have been made a long time ago to require buyers to have skin in the game...

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I know very little about USDA loans, but if I recall correctly USDA also originates some loans themselves.  You may have already eliminated that as a possibility.  This may not apply to your situation for one or a hundred reasons.

 

Out of curiosity, are the lenders that USDA gave you community banks?  

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nothing I've read says it is "supposed to be zero % down;" rather, the guidelines say that max LTV is 100% but that does not mean all participating lenders will do zero % down.

 

the google led me to several lenders. when you say none of them do this type of loan, what exactly did they say?

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On 10/16/2020 at 1:38 PM, hegemony said:

nothing I've read says it is "supposed to be zero % down;" rather, the guidelines say that max LTV is 100% but that does not mean all participating lenders will do zero % down.

 

the google led me to several lenders. when you say none of them do this type of loan, what exactly did they say?

https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

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On 10/16/2020 at 1:22 PM, cv91915 said:

I know very little about USDA loans, but if I recall correctly USDA also originates some loans themselves.  You may have already eliminated that as a possibility.  This may not apply to your situation for one or a hundred reasons.

 

Out of curiosity, are the lenders that USDA gave you community banks?  

Those are called Direct Loans and I don't qualify, income is too high. 

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On 10/16/2020 at 12:15 PM, centex said:

Does the program mandate zero down for ALL applicants or is it the standard fine print outlining qualifications? 

 

Not every entity has to participate in programs and it is not at all uncommon for government entities to have outdated lists. 

 

You may well also be caught in the changes that should have been made a long time ago to require buyers to have skin in the game...

Current list, The construction to perm loan kicked off in August 2020, that's why I'm having a hard time finding a lender to do it. 

I called all of them on the list and they have heard about them but haven't done any and automatically jump to their construction terms. 

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