Thoughts on USDA Rural at this time.. (insurance, loan, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

mamaecho · 04-10-2010, 03:42 PM

Alright, we applied to get a USDA Rural loan a few months ago, everything was great until the seller had a 100k lien on the property so obviously we didn't go to settlement. Now we found another house so we obviously have to reapply to USDA Rural. Any thoughts on the chance that we will get accepted? I've heard they are almost out of money. Would we be better off applying for USDA Direct? Or should we suck it up and try to find some money for FHA? Can we apply for both USDA Rural and USDA Direct in hopes one of them works out??

Thanks

SmartMoney · 04-11-2010, 05:09 PM

If this new property is not registered w/ USDA, I would be willing to bet chances are slim. Every year (except for last year) they oversell the program. HOWEVER, there is a huge push for this and the Federal Flood Insurance program. Last I heard, funding for both are tied up in the same bill.