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I've got a weird situation going on with my loan and I was wondering if anyone else had dealt with anything similar or would know what options I have. I am getting a USDA loan but using it to purchase a new manufactured home using a land/home package. This is unusual for the USDA because of the way the USDA loan works. My understanding is that they don't do "construction" loans so basically Clayton Homes (who I am purchasing through) has to front the money for the home/work using their bank Vanderbilt until I close with the USDA lender and they give me the money. Because of this, Clayton had to tell the lender how much money we need to purchase the land, purchase the home, and then do the work to the land to make it ready for my home. I know this is probably confusing (trust me I'm a first time home buyer so I am just doing my best to understand it all) but we factored in 13K for my land because I thought I had a deal but it fell through. I have found an even better piece of land (more land, better location, virtually no clearing/grade work to be done) but it is 18K. I've worked them down to this but believe this is their bottom dollar. My loan is already in the underwriting stage with the lender so does anyone know what would have to be done if I do take on more land cost than we had initially estimated? Can i pay the seller a couple grand out of pocket to maybe make up the difference? Anybody dealt with a similar situation?
From what I get from your thread...you have found a totally different piece of land. USDA would need to know this information. It is not as simple as just paying the difference out of pocket as they are also giving you a loan to secure the land as well as the manufactured home.
It is a totally different piece of land. But we've never had any land secured as I never had a purchase agreement or anything on the first piece of land so I was surprised the loan even proceeded as it did. My main concern is if anything is illegal or unethical if I were to pay the land with the 14K from the loan that we had initially intended to put toward land and then just give the seller an additional $3,500 for the land. As far as the USDA is concerned the land costs 14K or whatever.
I spoke with my guy at Clayton Homes and he doesn't expect it to be a problem to just add in an additional $3,500 to the loan even though it is already in underwriting as that really isn't going to affect my monthly payments very much. We're going to speak with them tomorrow to see if it will be better/possible to pay that difference out of pocket or just add it in. However something else came up and I was wondering if anyone else had heard of this. He says that the underwriters need a copy of my birth certificate?! I understand financial statements, social security number, etc. but do they really need my birth certificate?
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