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Company Loan Type APR Est. Pmt.

USDA seasoning/antiflipping rule?

Posted on: 12th Feb, 2010 02:26 pm
I just received a phone call from my moronic mortgage lender (I have had so many problems with this person, its just one thing after another) and she informed me that when we entered into contract, 90 days did not pass from when the seller bought it. So now, according to her, the house is ineligible through the USDA.... I cannot find a single piece of information online about this rule for USDA loans. Anyone?
I haven't heard anything about that guideline from the USDA either, but it used to be an FHA guideline, until recently. Now there's no more 90 days seasoning rule for FHA. Many times Lenders will incorporate FHA guidelines as overlays for their VA and USDA programs.

If that Lender has a 90 day USDA anti-flip rule, move your loan to another Lender.
Posted on: 12th Feb, 2010 05:27 pm
Thank you for the reply. I will be switching lenders for a variety of reasons. The broker informed me last night that we might be able to get a waiver contigent on the seller providing proof that they actually put $10,000 in the house... I don't even want to bother with this course of action. I find it rediculous. Wouldn't it be possible to re-enter into contract? 90 days has passed now.
Posted on: 13th Feb, 2010 05:57 am
>>Wouldn't it be possible to re-enter into contract? 90 days has passed now

When you purchase a home, you only enter a contract with the Realtor, not the Lender. You can fire your Lender at any time and move to another. It seems as if your particular Lender has been nothing but hassles for you ... you should have fired them a long time ago.

The problem is, with purchases, is if you've entered a contract to buy a home. That contract might say you have 30 or 45 days to complete the transaction. You probably don't want to fire your Lender when you're halfway through the transaction, because it'd mess up the deal and you could lose your earnest money. But if you're not in that process, and you're not comfortable with your Lender or Loan Officer, switch to another.
Posted on: 13th Feb, 2010 06:28 am
Thank you Raymond. Our closing date is set for the end of this month, and the process with my current lender has barely even begun. The loan hasn't even went through underwriting. Unfortunately, with everything as it is now, we are going to miss our closing date, thus switching to a new lender will make no difference in that regard. Hopefully, when I meet with a new lender on Monday, this 90 day thing won't be an issue.
Posted on: 13th Feb, 2010 12:11 pm
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