Home Buying in Raleigh>Question Details

Usda_help_pl…, Home Buyer in Raleigh, NC

After being approved through my bank, the USDA denied the loan. They said they have never had this happen. What is the appeals process like?

Asked by Usda_help_please, Raleigh, NC Mon Aug 15, 2011

My bank said they had never even seen this happen and didn't even know what the appeals process was. Please help as I am stuck living in a hotel now, as I was supposed to take early possession of the house and close this Thursday.

Help the community by answering this question:


I've never heard of USDA rejecting any applicant without an explanation, however, I also have not heard of the Seller allowing possession before closing with an USDA loan. Your loan officer has a contact at USDA who should be able to get a better answer.

If not contact the Raleigh Regional Office at: 919-875-4880, 4405 Bland Road, Suite 160, Raleigh, NC 27609 Fax is: 919-875-4915.
1 vote Thank Flag Link Mon Aug 15, 2011
I have had 2 loans that were denied by USDA. One was this year and it was denied because the USDA Specialist did not like my underwriters "credit wavier". The borrowers credit was below 640 but above 620. The USDA specialist did not feel the credit was strong enough to approve. The buyer had limited credit so it was just a matter of getting a credit card and the score went over 640. It was resubmitted and approved. USDA also is not a big fan of "payment shock". The key is to get the correct answer of why USDA didn't like the file and addressing it.
Web Reference: http://www.usdalending.com
0 votes Thank Flag Link Sun Oct 16, 2011
As a seller, how can you get those answers. We are three days away from closing and I just now find out that the loan was rejected. I have an Agent and they are having trouble getting answers too..
Flag Fri Sep 11, 2015
Do you have a Real Estate Agent?
0 votes Thank Flag Link Tue Aug 16, 2011
Is the Seller willing to wait until you can get a better loan? No doubt s/he won't want to have this house actively returned to the market with the thousands of others. Plus -I'm told the State Employees Credit Union has a 3.75% interest rate. Just in case you want another opinion for a lender.
0 votes Thank Flag Link Mon Aug 15, 2011
I feel I am getting the run around from my bank as well. That is why I reached out here. Just to clarify though. It was USDA who denied me, NOT the Bank. The bank also told me I would be forfeiting all money I had invested so far and also be on the hook for other stuff (ie home inspection, appraisal, etc) that came in if this deal falls through and I don't win my appeal. Would there be any legal recourse I could have against them for this?
0 votes Thank Flag Link Mon Aug 15, 2011
If the bank feels you're a good credit risk then they should identify a different loan product. Regrettably, I think you've been given the run-around. Imagine if you had moved in.

If the Seller is willing to let you rent for 6 mo-1 year, the picture may look brighter.
0 votes Thank Flag Link Mon Aug 15, 2011
They denied me. The lady over the file said she didn't think I would keep my main job or my part-time job as well. She said that based off that she thought it was too much house for me and that I was to unstable in my employment.
0 votes Thank Flag Link Mon Aug 15, 2011
It depends why they denied teh loan... Did they deny you or deny the property for not meeting specifications? That info is important to be able to point you in the right direction.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Aug 15, 2011
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