Author Topic: USDA Loan- too good to be true?  (Read 1440 times)

essjay43

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USDA Loan- too good to be true?
« on: September 29, 2014, 05:57:16 PM »
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

blueflipflop

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Re: USDA Loan- too good to be true?
« Reply #1 on: September 29, 2014, 07:48:50 PM »
I just went to a workshop about this and my impression was that you had to be a first time home buyer, but perhaps it varies state by state?  You might check out the USDA website, I was trying to dig around and figure out the answer to this question as well but it is still unclear to me.  You could always get a second opinion with a certified housing counselor- they are typically more well versed in the different types of loan programs like the USDA.