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IF the borrower does not intend on occupying the home within 60 days then it is possible that the loan doesn't meet the requirement for USDA eligibility.Is there any reason why the borrower didn't apply for a VA loan?The VA guideline specifies the borrower should occupy or intends to occupy the home within a reasonable time from closing. Underwriting will need to determine what's reasonable which might be the loophole you are looking for in order to get closed.
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For Sale: $209,500
For Sale: $139,900
For Sale: $399,000