Any experience with a USDA backed mortgage or a HUD 203k?

[dcdubbs]

Here is some additional info on USDA loans - including what states have them and what states do not:
USDA Loan

[Janine Lucas]

We are in the process of selling a home and the buyer has applied for a USDA backed loan. It has been a NIGHTMARE for us!! If I knew then what I know now, I would reject any offer from a buyer usng a USDA loan. 2 days before the scheduled closing, we were handed a laundry list of repairs that had to be done for the loan to be approved. Mind you the buyer was buying the house as is with 4% buyer assistance for 80% of the market value. For the buyers, this has been a long and frustrating process resulting in them being homeless until their loan has been stamped by the government. The USDA should stick with helping agriculture and get out of the mortgage business.

[mannyp02]

Originally Posted by rainmand

USDA allows Manufactured Homes but they must be brand new - they can't be pre-existing like with the VA or FHA programs (manufactured homes can be done with those two programs if the home was manufactured after June 15, 1976). The USDA program even enables the homeowner to include the price of the land.

Correct. I am actually waiting on final approval on a land/home package through USDA right now. The only caveats are that you have to buy new from an USDA approved manufacturer (in my case Clayton Homes) and then the appraisal is very important. There is some red tape involved but it has been a fairly swift process for me. The appraisal is the only thing to worry about. To do the land home package you basically have to tell the lender up front how much money you need to cover the home, land, and improvements to land. They check to see if they can approve you for that and if so then the appraisal comes in to play. The appraiser has to make sure that the home would appraise up to or higher than what you are asking for in your loan. In my case it seems that its going to work out although a second appraisal did have to be ordered due of lack of comps in my area in recent months.

[marmac]

Originally Posted by Janine Lucas

We are in the process of selling a home and the buyer has applied for a USDA backed loan. It has been a NIGHTMARE for us!! If I knew then what I know now, I would reject any offer from a buyer usng a USDA loan. 2 days before the scheduled closing, we were handed a laundry list of repairs that had to be done for the loan to be approved. Mind you the buyer was buying the house as is with 4% buyer assistance for 80% of the market value. For the buyers, this has been a long and frustrating process resulting in them being homeless until their loan has been stamped by the government. The USDA should stick with helping agriculture and get out of the mortgage business.

--"The USDA should stick with helping agriculture and get out of the mortgage business "

I agree 100% with that.

A few days ago , Colin Peterson ( Charman of the House Agriculture Committee) was on radio and asked about the plight of dairy farmers.

He stated there really isn't much help available cuz the Federal Govt and USDA don't have money and must cut back.

Seems they have plenty of money to make non-agriculture loans to non-farmers.