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USDA Direct w/650+ midscore
#1
Posted 07 February 2012 - 12:49 AM
We're putting in the pre-app on Friday. We expect it back most likely next week with initial approval. It's after that that I'm not sure what happens... I want to be as prepared as possible so I can get a quick turn-around back to them. We're on a tight-ish deadline. Thanks for any help.
#2
Posted 07 February 2012 - 10:04 AM
Every loan gets manually reviewed - with an automated approval they are less difficult on the review - with USDA I believe it is now a 660 (things keep changing it used to be 620 someone will correct me if I am wrong) and the review is less critical - there is no way for an UW not to see and have a say in something like this.I keep reading that there is no manual review when the midscore is over 640. Does this mean there will be no credit questions? No needing to pay off an old collection? Faster process overall? Dh has a chargeoff that looks less than 1 yr old, and I have tried literally everything but suing and they won't fix it. I want "no manual review" to mean this is not going to cause us any problem. Is that what it means? Does it mean they just say yes and they review your income info for a limit? Please say yes!
We're putting in the pre-app on Friday. We expect it back most likely next week with initial approval. It's after that that I'm not sure what happens... I want to be as prepared as possible so I can get a quick turn-around back to them. We're on a tight-ish deadline. Thanks for any help.
B
#3
Posted 07 February 2012 - 11:11 AM
So, it still gets looked at, but it's not necessarily enough to get an auto rejection. Is that correct, then?
#4
Posted 10 February 2012 - 10:41 PM
#5
Posted 10 February 2012 - 11:23 PM
Put the app in today. Midscore was 652. Wish us luck!
Good luck!
#6
Posted 11 February 2012 - 07:31 PM
#7
Posted 11 February 2012 - 08:06 PM
#8
Posted 13 February 2012 - 09:58 PM
No word back yet on the pre-app I put in on Fri morning

GGRRRRRR at the stupid USDA for making everything take so long. I think we could still make an offer w/o the preapproval, but I'm not sure and would it make our already almost low-ball offer weak...? (The house is listed high and realtor says go in 10 thousand under the new, lower price) I read some encouraging stories here about the USDA making it quick. 24-48 hours on the pre-app, 1-2 weeks for preapproval, and I was hoping for the same results. Here's to still hoping!
You all cross your fingers for me and I'll promise to do the same in the next few months when you put in your apps, k?
#9
Posted 14 February 2012 - 03:19 PM


Edited by gabbyraja, 14 February 2012 - 03:20 PM.
#10
Posted 14 February 2012 - 09:38 PM
#11
Posted 15 February 2012 - 09:10 AM
#12
Posted 17 February 2012 - 09:59 AM
He also eluded to the fact that we could get our certificate in a week or so if everything is together and correct in the paperwork we turned in. I typed anything I had to say, printed EVERY page of everything, just in case they need it, collated and stapled. Very professional, very complete. I am trying hard not to be the one leaving any stumbling blocks in the road. Make their job easy and they'll make my life easy, right? I'm taking it all in in person today. Keep those fingers crossed!
#13
Posted 17 February 2012 - 10:18 AM
#14
Posted 17 February 2012 - 10:51 AM
#15
Posted 17 February 2012 - 06:55 PM
Good news: She went through everything needed with me and I had everything, so there should be no delays. Mon is a holiday (Doh!) but it will be in the system on Tues. The reviewer just had eye surgery, so he's on restricted hours, so it'll take about a week. Hey, a week is not that long when I was expecting a month, so yay!
Bad news: While I waited for the person who takes the forms I read a brochure. It says no houses with in-ground pools or "farm structures." The house we wanted just happened to have an in-ground pool (we weren't looking for a pool, it just had one and we thought that was fine). CRAP! She said it would be denied. I assumed it was a safety thing like FHA, but she said it's because that's considered a "luxury item" and they are giving loans to poor people, essentially, so it wouldn't be good to give a loan for a luxury house. The barns she said because then you could turn around and start a farming business and they're not funding businesses, just residences. So, someone could make an income and not depend on state assistance or other low-income programs anymore, but that's bad...

Anyway, now there's no huge rush and we're back out looking at houses. Man, the loss of this house is getting me. It had a heat pump. That would have cut almost $2,000 a year off our bills. Sigh... Everything happens for a reason. I have to believe it.
Edited by gabbyraja, 17 February 2012 - 07:00 PM.
#16
Posted 17 February 2012 - 07:04 PM
#17
Posted 17 February 2012 - 07:11 PM
#18
Posted 17 February 2012 - 07:20 PM
What is difficult is the luxury homes? This is such a gray area. Who knows what they will see as too much.. another is having savings - how much is too much before you are considered able to get another type of loan..A few years ago I helped someone get a guaranteed loan in Alaska - well USDA is a little different in certain rural areas of Alaska - the income limits are the highest I had ever seen with family incomes allowed up to around $150,000. They also had I believe roughly $50k in savings....The cost of living there is so much higher that this wasnt seen as too much....also if you lived in an area that couldn't accessed by road the income limit was 150% of the normal limit. In the end they got a loan for a home in the 400k range that would never have qualified here just based on their savings account and income limits but there it went through without a hitch - everyone at the bank had to sit and review the guidelines since it seemed so unlikely to get through...... The client was ecstatic - when I visited a few months later on a cruise they hooked me up with a trip on a fishing charter

Good Luck OP sorry you had to find out after getting your heart set on a home that the pool was a deal breaker - there will be another one out there for you.
B
#19
Posted 17 February 2012 - 07:20 PM
#20
Posted 17 February 2012 - 07:21 PM
Guaranteed as wellIs the no pool for the direct loan only? We live in FL and tons if houses have them....we will be doing guaranteed though
#21
Posted 17 February 2012 - 07:33 PM
#22
Posted 17 February 2012 - 07:33 PM
#23
Posted 19 February 2012 - 04:45 PM




#24
Posted 19 February 2012 - 08:20 PM
#25
Posted 19 February 2012 - 09:18 PM


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