The town I live in is qualified for USDA home loans. I currently have a multi family in the same town and would like to keep it as an investment. Putting zero down on a house would allow me to buy another fixer upper I've been watching for some time. My loan officer got me approved in the USDA's automated approval system (GUS), but the USDA guidelines say you can't use their loan to buy a second home in the same area. My loan officer said everything was fine in GUS so we have nothing to worry about. However, I'm worried that it's just a glitch in the system and will be discovered just before I'm supposed to close. So the question is- do I move forward with USDA and risk it or just move on to traditional financing?
***loan officer is a friend which makes the situation a little more difficult