They used to be easier to obtain....not so much anymore. Guidelines are tighter for both the borrower and the property. In addition, I believe that there may be a certain minimum credit score now required.
My niece and her husband have great credit but no downpayment (he is disabled and they live on her income). The applied and qualified for $250,000 loan (USDA) for new home on 5 acres. They worked with the approved contractor and had everything in place for the home to be built for under $250k.
The last step was to get an appraisal and the gubment in all their wisdom got an appraiser from 200 miles away who got comps from the area they were building (1) and two comps from the some of the highest property value areas in the state.
The appraisal came in $45000 higher than they were going to have to pay. The result - they were denied the loan because it came in too high...even though the loan was under the limit.
Someone needs to help me understand why it would be bad for you to make a loan on a property that was worth $45000 more than what you were loaning on?
And these are the people that will be soon running our health care. God help us!
“They used to be easier to obtain....not so much anymore. Guidelines are tighter for both the borrower and the property. In addition, I believe that there may be a certain minimum credit score now required.”
Ah but as it points out at the HUB site with a USDA loan you don’t need a credit score.