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Hello all. I am new to the site,but have found some very valuable information on here. Long story short,my wife and I are looking to buy our first home. We are looking at Usda as the loans through them are really good compared to fha. Here is were the problem starts. First,we were originally told that our student loans that are on ibr payment plan would not count as they are 0,and they would add 1% of the total of all student loans as a factor in dti. The only way around that is to get our ibr higher. Fine,not an issue. New jobs and more income now.
Today I get a call from Usda saying they have changed the direct loan to 1.5% of the total lump sum of our loans together. My wife's and mine. Takes our dti way over in back end. I was then told that if our ibr is 0,and the garunteed program would work as it states. If you have an ibr under 100 they would add 100 to your dti, which is much better than 1 or 1.5% total loans. I called our mortgage guy back and said,Hey! I finally got some head way. He then goes on to say with the automated underwriting he is worried it will charge 100 per each line that is on the credit report. If they did 100 per line that would add up above the 1 or 1.5% for the lump sum. They(usda) nor the government make things easy.
To add: we have an income of 44,000
car is 364 month
cc-are 80 a month for all of them, could close a couple out,but was told not too.
Those are the only 2 reacquiring debts we have. We are pre approved, but nobody seems to be able to figure out these new automated underwriting laws,or how the usda calculates the student loans for the guarantee program. The student loans and how they are calculated are a hurdle we are trying to over come. Thanks all for any and all help you can provide.
I just closed on a USDA guaranteed loan last week. I did not use my regualr bank for the loan, I went with someone that specializes in USDA loans. The lender does not have to use GUS. Ask them to write the loan manually.
I just closed on a USDA guaranteed loan last week. I did not use my regualr bank for the loan, I went with someone that specializes in USDA loans. The lender does not have to use GUS. Ask them to write the loan manually.
We are trying to use fifth third for the usda grantee loan. My wife works there and has special discounts for having the mortgage through them. I have even called around to mortgage brokers and other loan offices,but they are all saying they have the automated under writing,and no way to get into gus. I guess the only option left is to just have the mortgage lender at fifth third do it and see what happens when usda gets it. Doesn't hurt to try I assume. I have been back and forth past 2 weeks trying to get all the information we need so there are no potential hick-ups along the way. But,I guess that is for a more perfect world scenario. Just discouraging.
I just closed on a USDA guaranteed loan last week. I did not use my regualr bank for the loan, I went with someone that specializes in USDA loans. The lender does not have to use GUS. Ask them to write the loan manually.
You cannot request a Manual Underwrite. GUS must be executed every time. Certain factors may trigger a Manual Underwrite, but it's not an option that a borrower can preemptively choose.
Yes I am "cranky much." Fifteen years in Mortgage will do that - I'm just trying to provide clear and accurate information here, instead of hearsay and BS.
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