So If I get approved for a USDA loan?

Asked by Jessica, 33579 Thu Jun 6, 2013

Ok so lets say I get approved for a USDA loan and I love a house by Ryland homes. But they say we should go through their in house lender because we will get credit for them paying most of the closing cost. my question is can we still buy from them? and will they neg the closing cost??with us not using their in house lender?

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Five Stars, Other Pro, Jacksonville, FL
Sun Dec 6, 2015
This is common with all large builders, they can't make you use their in house lender. However, they can only offer the closing costs if you do... but everything is negotiable.

Five Stars Mortgage
National Home Loan Resource
7 days week - 9am-8pm
Ph: 800-871-2636
1 vote
Scott Lynn, , 33549
Thu Jun 6, 2013
Hi Jessica I hope you find the home of your dreams soon. I would like to let you know that most of the time in my experience home builders will not negotiate their closing cost credit if you choose to use an outside mortgage vendor.

We do have an in-house mortgage lender in the Tampa Bay area that if you cannot be approved by Ryland mortgages inside mortgage division will assist you with your financing and Ryland will still let you receive the closing cost credit.

Most importantly before signing a contract with the builder it is very important that you enlist the services of a knowledgeable realtor who has experience working with home builders we provide you a general contractor that will perform inspections for you during the duration of the building process and help keep your home on track to being built correctly.

Without a GC to provide oversight on pointing out issues that the builders contractors will easily overlook will go unattended and cause problems for you in the future we also offer a one and a half percent rebate to you just for using us as your Realtor if buying a new home from a builder.
1 vote
Barbara Baker, Agent, Wesley Chapel, FL
Thu Jun 6, 2013
Most builders' lenders will be able to do a USDA loan, if the home is in a USDA approved area. If you are looking in the Wesley Chapel area it should be approved.
it is almost always a good idea to go with the builders lender as they do give you closing cost credit. You can buy from Ryand, but if you do not use their lender they most likely will not give any clsoing cost credit.
Please let me know if I can be of assistance.

Barbara Baker
RE/MAX First In Real Estate
1 vote
Ken Allen, Agent, Clearwater, FL
Thu Jun 6, 2013
Hi Jessica,

Why arent you using a Realtor?
1 vote
Lynn Brock, Agent, Sarasota, FL
Mon Sep 9, 2013
Jessica, your question reflects that you seem confused.

Ryland Homes offers terrific financing for their homebuyers. Their loan program include USDA. A Ryland Home representative can provide you with an estimate of closing costs. I spent an afternoon with clients at a Ryland Homes sales office reviewing the same concerns.

Ryland Homes is the builder and Seller's (Listing agent). If you show up without a buyer's agent you are not represented in the transaction. A buyer's agent schooled in new homes can save you money and ask questions that you might not be aware to ask

Use an agent specializing in new homes.

Best regards,

Lynn Brock
Brock Realty Inc.

Premier Tampa Bay brokerage. "Global Effort. Local Experience" Our Local Experience provides infinite benefits and produces positive communities where our clients and agents live, work and play. Our Global Effort delivers our commitment and professional knowledge to our clients. We are strategic, resourceful and determined. Visit where you can sign up for a FREE Listing book account which allows you to search the MLS in real time and receive morning reports on new listings, current pendings and recent solds.
0 votes
Rebecca A. B…, , Tampa, FL
Tue Jun 18, 2013
Jessica, first of all, you SHOULD use a realtor as a buyer, because it can only help you. You do not incur the cost of their commission but rather the seller does. Also, I have been doing builder purchases for many years as well as USDA loans. I have a USDA purchase thru Lennar going as we speak. As for them not paying any cost if you go outside of their affiliated lender, it is not a set in some concrete rule. It can be negotiated. Also, as for the cost they pay FOR you - they add their cost to your side of the settlement statement so the credit is not totally a benefit to you.

Feel free to contact me...
0 votes
Curly Sue, , Texas
Fri Jun 7, 2013
What did they say when you asked them?
0 votes
Alma Kee, Agent, Tampa, FL
Fri Jun 7, 2013
Ask your Realtor.

If you're not working with a Realtor you may not get a great deal. Some buyers think they'll have an advantage with a Builder by not having their own Realtor but I've seen an outside Realtor end up getting the commission without a buyer's knowledge! This just happened very recently when I went to register one of my clients online and it was already mysteriously assigned to an outside Re/Max Realtor!

Everything is negotiable. Also there was a recent RESPA violation identified with builders getting a kickback from an inhouse lender so Ryland may be more amenable to letting you go with your own lender.

Also in Pasco county if you're approved for USDA then you may be able to get a POP house and pay only on half the value. These homes are rehabbed and look like new. There is a lottery to get one and you will have to attend a 2 day home buyer class but you could get twice the house!

If you're not yet working with a Realtor, I'm sure there are many who would love to assist you.

All the best,
Alma Rose Kee, PA
Sold On Tampa Team
0 votes
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