Reneeinwa, Home Buyer in Seattle, WA

Regarding USDA Loan: I continue to see the statement "Families must be without adequate housing, " can anyone expand on what this means?

Asked by Reneeinwa, Seattle, WA Fri Feb 19, 2010

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9
Mariammia, Both Buyer And Seller, Greenwood, SC
Mon Jun 20, 2016
There are two primary types of USDA loans for rural home financing. They are:

Rural Development Guaranteed Loan
Rural Development Direct Loan

The Direct Loan is the USDA's loan program where the underwriting and financing is handled by the agency itself. The USDA provides a guarantee to protect the lender in case of default in the future. It is currently the only available 100% Financing available for purchasing rural homes. Basically it's a zero down payment loan.

http://USDALenders.org
2 votes
x, , Mill Creek, WA
Fri Feb 19, 2010
I'd also like to add, USDA also has income and property location restrictions. See the below link. You can use this website to check a property you might be interested in to ensure it's within the USDA boundries. You can also check income limits for your family size in the county you will be buying in. Your mortgage professional can help you further if you are unsure of anything you see within the USDA website. Good luck!
2 votes
Scott Seppi, , Bellevue, WA
Fri Feb 19, 2010
It simply means that you cannot own another home while aplying for a USDA loan. If you currently have a home that is for sale, it must either be already sold, or it must be in the process of closing.

Hope that helps, let me know if I can do anything to help!
2 votes
x, , Mill Creek, WA
Mon Feb 22, 2010
Hi Ardell,
Yes an experienced USDA lender definitely helps. I'd allow 45 days with an "or sooner" closing date. The one we're closing right now will be a 30 day close, but depending on what happens with the appraisal etc, it's always best to allow more time than less, especially if the buyer is in a situation where they might lose their earnest money.
0 votes
Ardell Della…, Agent, Kirkland, WA
Fri Feb 19, 2010
Thank you, Sofia. I think a borrower would also be wise to use a lender who has some experience with USDA loans. Do you agree? How long from start (contract) to finish (closing) would you allow for a USDA, assuming a seller will not grant an extension, and the buyer could lose their Earnest Money if they do not close on time?
0 votes
x, , Mill Creek, WA
Fri Feb 19, 2010
Just want to add another comment from the lending perspective with regard to USDA timing. Yes USDA was really backed up a few months ago, but we have one in process in my office and got the USDA approval in 24 hours. So USDA is caught up. At this point timing isn't a concern.
0 votes
Jirius Isaac, Agent, Kenmore, WA
Fri Feb 19, 2010
Yes, the processing time is long for a USDA loan, but right now it is better then it was 6 months ago. Also, I would wait a few extra weeks to save the mortgage insurance every month as long as it was possible with the seller!
Web Reference:  http://Metromgi.com
0 votes
Ardell Della…, Agent, Kirkland, WA
Fri Feb 19, 2010
One of my clients tried to use USDA about six months ago, but switched to FHA because the processing time was prohibitive, even though it was a short sale and we had lots of time. The property qualified. It was in Carnation just over the Redmond border.

http://raincityguide.com/2009/10/07/truliaboy-gets-his-house…
0 votes
Jirius Isaac, Agent, Kenmore, WA
Fri Feb 19, 2010
Renee,
I think you got the main points of your question answered in the 2 previous answers, so no need to repeat. Please consider that if you are ready to buy, then you should just get going with a lender and agent that know what they are doing. I just happen to do both for my clients so that I can save them a lot of money, have it all done in one place and so a good job for them.

As I have suggested in past posts, and will continue to suggest, is that buyers Google every agent that responds to your question here on Trulia, learn as much as you can about who they are online, read their client testimonials, so you know what their clients are saying about them, and then give us each a call and just ask us why we think you should work with us instead of another agent. Then, pick the best fit for you and let them go to work for you with the skill and knowledge that they have. I hope to hear from you soon.
0 votes
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