Profile picture for ohamassil

USDA Guaranteed lenders in PA - help

We are first-time buyers looking for homes in Central PA. We're looking to relocate from NJ. We have been pre-approved for a loan. His credit is lendable through USDA (640 middle,) we have minimal debt (car payment and one secured card) and are approved for a 62k loan.

Two issues:

My husband works for a major retail outlet. His job is transferable. But, we cannot get a guarantee of transfer until we have a date when he will be available. Our LO is adamant that they can't move forward AT ALL with processing a loan committment until we have a job offer in writing. And due to the nature of the process and the potential for last-minute denial, I don't feel it's wise to move ahead with a job transfer without at least a loan commitment. So we are between a rock and a hard place. I understand that USDA and the lender must be sure we have the income to repay - but it seems as if it will be difficult to guarantee his ability to transfer without being fairly sure our loan will close in a certain timeframe, and being able to give them an availability date. Right now we can't even put an offer in on a home due to this stalemate.

Second issue is that due to the transfer, he may face a small pay cut and due to that we may have to request a DTI ratio exception on the loan. The #1 factor in this is that we have negligible debt and are currently paying 900 dollars monthly for rent - whereas, after relocation, our estimated housing expense on a 62k loan is around 500 a month, max. So there is no payment shock. We're hoping that with proof of our ability to pay much more in rent than what we'd be paying on a mortgage, that we may be able to get a small exception on the DTI (it truly would be minor, my calculations have our housing payment being around 35%, worst case scenario - whereas we are surviving just fine right now with it well over 50% due to our lack of debt.) How feasible is this based on our situation? 

I appreciate any responses or insight.
  • August 15 2013 - State College
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Answers (2)

Profile picture for Oklahoma Mortgage
USDA will make exceptions in some cases. I would try to contact the local office that will issue the commitment to see if it something that is feasible. [hot link deleted by Zillow moderator]
  • December 25 2013
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You are in a tough spot.  USDA (and basically any program) is going to require some type of guarantee of employment.  There is really no way to issue you a loan committment without one unfortunately.  I realize this may not be the answer you want to hear but you might need to consider doing a short term rental once moved out there and then apply for the USDA program after your husband has 30 days worth of paystubs from his new location.  Hope that helps.

  • August 16 2013
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