USDA home loan?

posted 3 years ago in Home
Post # 3
Member
1802 posts
Buzzing bee

@crisy003:  SO and I are thinking of going this route. It’s nice that your parents are willing to offer up a down payment, but I’m not sure if you have to actually have the money in your own savings account for a certain amount of time for the USDA loan. I know other loans require you to have that money available and untouched for a certain amount of time before they will loan the money to you. I wouldn’t consider 100% (or anywhere close to that amount) USDA financing on a larger loan, but $57,000 is pretty minimal especially if you plan to stay in the house for a while. Just make sure to look into what closing costs would be required (if any).

Post # 4
Member
3538 posts
Sugar bee
  • Wedding: September 2013

USDA is a great loan. I’m not sure how it is set up there, or if they’re all the same, but here it requires no down payment. 

We were using it to purchase our home, but after we paid for the USDA inspection we found out they could not cover the value of the in ground pool on our property. We ended up going FHA and qualified for down payment assistance, so it ended up being 100% financed.

Post # 6
Member
120 posts
Blushing bee
  • Wedding: June 2013

We got a USDA loan.  There is no down payment required.  They looked long and hard at our finances, and I had some pretty major hoops to jump through since at that time I was a cash girl from my many years of waiting tables.  I wrote a letter that got us through that hoop, and we did some painting at our house before it was ours because apparently inspectors have to come up with something when they inspect.  (LOL, just kidding but I do wonder…)

 

We had some odd circumstances since we live in a small town.  The realty company loosely suggested that if somebody painted, they sure weren’t gonna say anything.  Our realtor happens to also be a house painter, so we had that licked.  We also pretty much had access to the house anytime we wanted before we bought it.  Oops-shhh!  I’m saying too much!

 

Bottom line is that the USDA loan is awesome!  They will look into different things than any other loan just because it is intended for rural areas.  Best example from our sale:  We bought a roughly 9000 sq/ft lot with a house, but we had to have our clerk write a certified letter stating that our land could not be divided for sale.  This was crazy to us until our realtor explained that the reason for that is in cases where people buy a farmhouse with a lot of land.  They could feasibly sell off a lot of the land leaving the mortgage collateral at less than the value of the mortgage.  They will also want to know about the water (a well will need to be tested).  My mortgage guy was sooo confused by this.  I had to tell him we were okay since it was city water and not a well.  LOL.  You get my drift about the little oddities?

 

If you google search USDA loans, you can see the basic rules and requirements, but feel free to PM me if you have specifiv questions about my experience.  Congrats on finding a great home and best of luck on your search for a great loan!!

 

Post # 7
Member
3538 posts
Sugar bee
  • Wedding: September 2013

@crisy003:  I’m guessing RD is a rural development loan which I think is part of USDA. The best thing to do is speak with a few lenders and see what type of loan is best for you. They will ask you every.single.thing about your finances and tell you what options you have. If your parents plan on gifting you money for the house, I’d say wait until after you close to get the money if you can. If not, your parents will need to write a letter stating that they gifted you the money and they will have to provide bank statements showing they had the money to give. My mom had to do all this bc she gifted us some money to help with initial fees and stuff and it was such a headache!

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