U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-12-2009, 11:24 AM
 
4 posts, read 31,977 times
Reputation: 13

Advertisements

My daughter is in the process of purchasing a new town home in Brandywine, MD. The property she is purchasing is eligible for the USDA Loan Program. The home will cost her about $260,000. The bottom line to this story is this: She was given a loan approval to purchase the new home under the FHA Loan Program but not the USDA Loan Program. When we ask why she wasn't eligible for the USDA Loan Program, we were told that it was a debt to income issue. The loan is being process through KHovanian Homes. Can anyone offer any clarification..............you would think it would be more difficult to get a loan approval (because of debt to income ratio) with the FHA Loan Program rather then the USDA Loan Program.......Thanks,

Ernie
Quick reply to this message

 
Old 08-12-2009, 11:40 AM
 
9,807 posts, read 13,761,838 times
Reputation: 8171
Seeing USDA ( United States Dept of Agriculture ) financing townhomes tells me something is screwed up in our government !
Quick reply to this message
 
Old 08-12-2009, 11:55 AM
 
Location: Wake Forest, NC
835 posts, read 3,672,178 times
Reputation: 648
USDA has maximum income limitations and FHA does not. This could be what the issue is.
Quick reply to this message
 
Old 08-12-2009, 12:08 PM
 
Location: My Private Island
4,941 posts, read 7,432,125 times
Reputation: 12262
Debt to income ratio requirements do vary between loan programs & types. Actually, FHA is much more "flexible" with debt/income ratio than most others.
Quick reply to this message
 
Old 08-12-2009, 12:43 PM
 
4 posts, read 31,977 times
Reputation: 13
dad2jules...............I'm not sure if you received my last post so I will state it again. My daughter who is single does meet USDA income limits and she has very little debt. So we are "puzzled" as to why she can get a loan approval for FHA and not USDA. The loan agent herself wasn't clear regarding this situation. For example, initially we were told that she did obtain tentative loan approval for a FHA loan and later when we discovered that the new property she is purchasing is eligible for the USDA Loan Program, she informed us that because she was already eligible for the FHA loan, she wouldn't have any problem being eligible for USDA Loan
Quick reply to this message
 
Old 08-12-2009, 12:52 PM
 
Location: My Private Island
4,941 posts, read 7,432,125 times
Reputation: 12262
If you daughter meets all of the parameters of both programs, I would question the loan officer and ask for proof of the debt/income variables they are using. As a consumer, you are entitled to know which option works the best.
Quick reply to this message
 
Old 08-12-2009, 01:02 PM
 
4 posts, read 31,977 times
Reputation: 13
Default USDA Loan Program vs FHA Loan Program

Thanks Seenorita, I believe this is the route we should take.........we still have time to sort this out. Her new home is scheduled to be completed prior to Nov 30th 2009........hopefully in time for the $8000.00 tax credit....Ernie
Quick reply to this message
 
Old 08-12-2009, 01:32 PM
 
Location: My Private Island
4,941 posts, read 7,432,125 times
Reputation: 12262
Quote:
Originally Posted by sonny4u2c View Post
Thanks Seenorita, I believe this is the route we should take.........we still have time to sort this out. Her new home is scheduled to be completed prior to Nov 30th 2009........hopefully in time for the $8000.00 tax credit....Ernie
Stay on top of the building process. I work in new construction and small things can come up at the last minute to delay a closing and 11/30 is cutting it close! Good luck!
Quick reply to this message
 
Old 08-18-2009, 07:52 PM
 
Location: Myrtle Beach, SC
540 posts, read 1,524,028 times
Reputation: 195
You may want to do some research here... Individual and Family Opportunities
If your daughter makes too much $$, that could be another reason.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top