Home Buying in 27344>Question Details

big_wilk78, Home Buyer in 27344

chances of winning a usda mortgage appeal when originally denied for being to liquid?

Asked by big_wilk78, 27344 Thu May 24, 2012

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You might want to speak to a credit uniton if you can. They have loan programs that would work for you without PMI
0 votes Thank Flag Link Thu May 24, 2012
I've not heard of being too liquid before. Perhaps you mean overqualified? If this is the case you probably don't have much of a chance winning the appeal, you would probably be better of simply finding a traditional lender and speaking with them

I hope things work out and you're able to buy the property you're pursuing.
0 votes Thank Flag Link Thu May 24, 2012
That's a good question. What does your loan officer think?

You technically are capable of obtaining an FHA loan or a 5% conventional loan with LPMI or BPMI so it's just going to come down to waiting and allowing the appeals process to take place and complete it's course. If you were my client I'd be trying to prepare you for the 'back up plan' as well.

In the meantime, does it jeopardize your contract? What happens IF or When your appeal is approved but the USDA RD loan program is out of funds for the year? Will your lender still fund your loan? Can they shelve it until Congress allocates funds for the 2013 program? What if Congress doesn't approve a budget?

I'd just hate to see your dream of home ownership become a nightmare when you can take advantage of today's low rates, the tax deduction that interest and mortgage insurance bring.

Also, your 20% reserves has now dwindled to 10%? What happened to $15k?
0 votes Thank Flag Link Thu May 24, 2012
The loan amount is around 155000. Change in payment of 100 per month. Would rather not pay that.....chances of winning appeal with only 10% now that is liquid?
0 votes Thank Flag Link Thu May 24, 2012
According to my lender usda is the way to go....fha because of pmi would push my monthly payment much higher
0 votes Thank Flag Link Thu May 24, 2012
Is this for an RD loan? Or is it an Direct loan?

The reason I ask is that I originate RD loans all the time and generally speaking they are typically reserved for those who do not have the ability to obtain more conventional financing. While I understand you may not have 20 % down any longer why don't you consider using an FHA loan as opposed to waiting for a governmental department to review your appeal?

I would think an appeal could take a lot longer. Did they even say how long the appeal process would be?
0 votes Thank Flag Link Thu May 24, 2012
Usda turned me down because I had 20% but now I do not because alot of those funds have been used towards the house. Curious how appeals normally go and time frame
0 votes Thank Flag Link Thu May 24, 2012
Who turned you down? your lender or the USDA?
0 votes Thank Flag Link Thu May 24, 2012
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