Will USDA approve my loan?
my girlfriend and I are trying to buy a house. The underwriter at our lender approved the loan but it still has to be approved by USDA. The problem is that we might be over the income limit for our area by $200. What do you think the chances are of the loan getting approved?
- loanmasteroneLv 76 years agoBest Answer
USDA is an investor that would back the mortgage of a mortgage lender would make mortgage loan to a person. USDA as well as any other investor such as FHA, VA, private investors would give their guidelines to your mortgage company in order for them to be known by your underwriter.
The underwriter would have to comply with these guidelines and would follow them to a "T" prior submitting your loan documents to USDA for the procedural rubber stamp approval. If there would be problems with USDA guidelines, your underwriter would not have submitted your mortgage loan package to them for their review.
I hope this has been of some benefit to you, good luck.
- linkus86Lv 76 years ago
It is a coin toss. The income limits exist for a reason so there isn't any grey area despite how much you and you loan officer might hope there will be. The USDA underwriter will be checking the processing work done by your loan officer so it is possible your loan officer may have miscalculated your income too high which could be to your advantage.
I know waiting to hear is causing you all kinds of stress. It sucks to be on the edge of approval, but realize it is completely out of your control and realize other loan options still exist for you via FHA if you do not qualify for the USDA loan. Good Luck.
- VictoriaLv 56 years ago
I think you mean FHA (Federal Housing Administration, unless you are buying a farm (USDA-United States Department of Agriculture). The alphabet soup can get confusing.
I hope you will get speedy approval. The loan does not come directly from FHA, but through a mortgage company. The FHA only guarantee the loan so that you can get a lower interest rate. If you cannot get the FHA guarantee, perhaps your lender can help you a loan with a payment and interest rate in your budget. You can't change your income after the fact, so it is what it is. Good luck to you and your girlfriend. I think you will love your new home.
- dog maLv 76 years ago
Victoria is unfamiliar with the USDA loan program, which can be used to purchase homes in areas that are considered rural - it certainly does not need to be a farm.
Ask your loan officer if he or she thinks that you meet the guidelines - generally the underwriter knows the guidelines well enough to know whether you should be approved or not. Good luck!Source(s): Former mortgage broker
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- 3 years ago
Usda doesn't care about what your whole debt is. The one factor they appear at is your minimal month-to-month repayments and and in case your totaled payments are less then 17% of your gross monthly revenue then you'll qualify.