for a usda direct home loan, do you get the full amount once approved?
say the house is 85,000 dollars. you were approved for 100,000. can you take the 100,000 or will they only cover the cost of the house? the house is a foreclosure and is technically worth 120,000.
Direct Housing Loans
Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
so you can't use the extra money to repair or renovate the home that you bought?
- falsi fiableLv 77 years agoFavorite Answer
You will never get your fingers on mortgage proceeds, so stop dreaming.
Your mortgage will never exceed the house purchase price, less your down payment.
Read "Home Buying for Dummies" to learn more about the process.
- RobLv 77 years ago
see u are new to this.
u never touch or see the money - simple.
if u approved for 100K and the house sells
for 85K then they the mortgage company
get the money and u get the house and payments.
technically matter not a thing.
what is paid is actual costs, nothing more.Source(s): landlord