Has anyone here obtained a USDA mortgage?

ToddSInGA · January 13, 2009, 03:15:50 PM

Just wonder if anyone has obtained a USDA mortgage to fund thier project? Because of my income and inability to come up with a down payment this looks like one of my only options ?

I definitely fall below the income requirements for a single person, although I live in Gwinnett County in Georgia which is not considered rural, however neighboring Hall and Barrow counties are, which is actually where I'd prefer to live.

Any info/advice would be greatly appreciated!

JRR · January 13, 2009, 05:38:45 PM

I don't have an answer for you. I will tell you things are crazy over at the HUD office. (I don't know if it because of dirty tricks that 'ole Alfonso was doing or not ... but now he's gone to better things.)

Personal experience: One of my neighbors bought his house and lot for $65k ... mega years ago. Financed thru FHA. He and his wife passed away ... all the kids had moved off. I wondered if the property might come to market ... a trip to the county land office showed that HUD took the property loan over at a book value of $48k. HUD finally put the property on the market for $58k ... HUD wants to make some bucks on the deal! ... nothing wrong with that.

I placed a cash bid of $35k, ... the highest bid. HUD refused.

Two weeks later, I placed a cash bid of $40k, ... the only bid this time. HUD Refused.

HUD then took the property off the market. My broker said he had never experienced this before. I was afraid I had lost the property.

After some weeks, HUD listed the property again. Asking price: $22k!!!

I bid cash $23k (I was afraid there were other bidders!). HUD accepted my sole offer! (Is this crazy or what?)

January 17, 2009, 10:56:34 AM

Can you explain what a USDA loan is? I don't recognize this.
I suggest that if you can't put 20% down on a loan and if the payments are more than 25% of your monthly NET income, you can't afford it. If that is the case you need to first get out of debt, have an emergency fund of at least 6 months cash and then you put down that 20% (or more if possible) and buy within your means.
If you do all this you can live comfortably and not have to worry about a place to live.
This is the best advice I can offer.
Okie Bob

Okie_Bob · January 17, 2009, 10:57:53 AM

I forgot. You only want a fixed rate mortgage and not more than 15 years long. Then pay it off as soon as possible.
Okie Bob

MountainDon · January 17, 2009, 03:25:05 PM

Quote from: Okie_Bob on January 17, 2009, 10:56:34 AM
Can you explain what a USDA loan is? I don't recognize this.
I suggest that if you can't put 20% down on a loan and if the payments are more than 25% of your monthly NET income, you can't afford it. If that is the case you need to first get out of debt, have an emergency fund of at least 6 months cash and then you put down that 20% (or more if possible) and buy within your means.
If you do all this you can live comfortably and not have to worry about a place to live.
This is the best advice I can offer.
Okie Bob

Okie_Bob! Right on! I believe that is the exact purchasing philosophy our parents went by, at least mine. Whatever happened to that?

January 18, 2009, 04:50:42 PM

MountainDon, to answer your question, I believe those teachings are tought by someone I believe Okie knows....Dave Ramsey......

MountainDon · January 18, 2009, 05:45:25 PM

Probably right; I quickly scanned the Ramsey link he gave. But really those numbers are more or less what our parents believed in 50 - 60 years ago. And that's what we taught our son and I think it has stuck as he's quite responsible financially.

Okie_Bob · January 19, 2009, 07:28:36 AM

Yep, the numbers I gave are directly from Dave Ramsey and he is right on. Don, you are right about this being the formula our parents and their parents before them basically used even if they didn't know it. I can recall back when you couldn't make a home loan if you couldn't put 20% down. Course now with the so called sub prime loans you don't have to even prove you have a job!!! How ridiculous!! It's no wonder we are facing disaster when all the big lending companies forgot these loans have to be repaid sometime.
I never did get a response to what a USDA loan is? I never heard of it, how about you Don?
Okie Bob

JRR · January 19, 2009, 08:01:00 AM

The USDA (Dept of Agriculture) has a "rural development" program. They use to, and may still, lend money to aspiring farmers, etc.
.
http://www.rurdev.usda.gov/

JRR · February 01, 2009, 04:53:34 PM

On one of the early morning Public Radio News shows (Jan 28, 2009), I heard a discussion of this government loan program ... so I guess it still lives.