|
|
Elite Veteran
Posts: 838
  
Location: Georgia | Anyone have any experience with this type of home loan or mortgage? The home is located in a USDA qualifying area. |
|
| |
|
 Elite Veteran
Posts: 928
Location: Northern CA | We had a very difficult time with USDA. They have very strict rules regarding property size, outbuildings, and type and age of construction. The places we were looking at did not qualify, we opted to go a different direction. |
|
| |
|
Elite Veteran
Posts: 682
Location: Northwest | There a strict guidelines regarding the home/property plus income caps for the borrow so it is best if you just contact your lender to tell you if the property (and you) are going to meet the qualifications. Good luck! |
|
| |
|
Married to a Louie Lover
Posts: 3303
 
| I believe the program I used to buy my first house fell under USDA - I know it fell under a first time home buyer government program.
Cute little farm style house in town. Fenced yard with a shed in the back...shed is about to fall over, paints peeling off, smells like something died in it. They called it a one car garage because it had a garage door on it, never mind that there was no gate big enough to get a vehicle into the backyard and a tree in the way of getting the vehicle to the garage. I had every intention of knocking it down the day I got the keys and had a local farmer friend lined up to do it - heck we were worried that it was in such bad shape it would negatively affect the inspection and asked the seller if they wanted it knocked down first!
The best part is: they wouldn’t approve the loan until we PAINTED IT. Literally had to go paint this piece of crap nasty shed so the government would approve the loan. It was a crappy paint job. The shed was gone 2 days after closing.
So that’s my experience. Whether or not I would consider doing it again if I qualified would entirely depend on the property and it’s condition, they are very picky over some of the most ridiculous things. |
|
| |
|
Elite Veteran
Posts: 838
Location: Georgia | Oh dear lord, they sound disasterous to deal with! Maybe I should just stick to the first time Home mortgage offer! |
|
| |
|
Extreme Veteran
Posts: 380
| I sold a home last year to buyers with a USDA loan. It was a bit more involved than a traditional loan. The buyers inspection required they meet a lot more requirements than we wanted to comply to. And buyers did not have money for closing costs and that is typically with these loans. We paid the closing and allowed the buyers in to fix/add to the house to meet the loan requirements. It took 2 months for everything to go through. My agent said it was the easiest USDA sale he was involved in. |
|
| |
|
 Elite Veteran
Posts: 936
| Is it just a home or is there acreage with it? If there is acreage and you produce a farm commodity(beef, hay, etc.) and file taxes Schedule F you may want to look into an Farm Service Agency direct participation loan. |
|
| |
|
 Expert
Posts: 2097
Location: Deep South | Yes! We used one. In my opinion, the team that is working on your behalf totally determines how your experience will go. We ended up with a fabulous, and I do mean fabulous mortgage agent. I know how awesome she was because I worked with a few others before her that were just mediocre, that gave me a list of things to do and said ok come back to me when you have a-z complete and are ready to proceed. But hello, you're applying for a first time home buyers program for a reason - you've never done this before! It's overwhelming. Our agent and her team took care of everything and she had us signing closing papers in just 11 days.
Your realtor and your loan officer are getting a commission off of you. They work for you! Feel free to interview them, don't feel pressure to hire the first one you talk to. Research them, read their reviews. If you do pick one and decide later they're not working out, find a different one! |
|
| |
|
Member
Posts: 34
| From what I have gathered recently, it is a pain. They are very picky with the inspection. I am in the process of trying to purchase an older house that needs improvements and 12 acres of land. In no way is it going to pass inspection. The only other option I seem to find is a conventional loan where you have to put at least 20% down, which is a problem for me because I don't have that kind of savings. I have determined it is nearly impossible for the average middle class person to buy something affordable so you won't stress over the monthly note. I have all but given up, and it seems like that is what it is coming to. |
|
| |
|
 Elite Veteran
Posts: 695
Location: Missouri | USDA loans can be very helpful to the buyers. There are 2 types a direct ( straight thru Rural Development) and then a Guaranteed loan which you go thru a lender and Rural Development guarantees the loan if you default) so if you don't have the down payment or have a lower credit score this is the way to go! Plus it is a fixed rate!
As far as inspections- the guaranteed loan inspections have to meet HUD guidelines which if they don't meet them then I wouldn't want the Home anyway! Lol on the direct side theninspectionsnare more intense and it really depends on your state on what they require.
The regulations on the guaranteed loans changed a couple years ago but find a realtor and lender that specializes in USDA Loans- but ask about closing cost because that is where they get you! Do shop around!
Good luck |
|
| |
|
Elite Veteran
Posts: 629
| Salary cap is $75,000 for USDA. We looked into them because we are looking for acreage farm, but we liked the FHA terms better (lower down payment, similar interest to conventional's.) We have made an offer, but we don't yet know if they've accepted, so I'll have more info if we get to close on how difficult the requirements are. I do know we've already been told for FHA the house has to be worth 50% or more of the total purchase price. |
|
| |
|
Elite Veteran
Posts: 838
Location: Georgia | The home has 8.75 acres. It’s a small farm home, barn, and split pastures. We have opted to go with a FHA loan. Our credit scores were good enough to get us a great rate along with a minimal down payment. I think a USDA Loan would have benefited us had our credit scores been lower but thankfully the other worked better. Thank you all for the advice and experiences! |
|
| |
USDA Home Loans