What are the typical reasons why usda underwriter would decline file?

Hi Darryl,It really depends on the situation. USDA has specific guidelines we have to follow or the loan will not be approved. I will be happy to share my opinion. Give me a call at 919-594-6995. I would like to hear your story. Regards,Brandon Moye

When your file is underwritten, over 100 different items are analyzed and looked at.. so there is no "typical" reason.. Your lender has experience in looking at complete loan packets and is pretty good at determining one's eligibility.. not to say that a loan officer has been wrong, but for the most part, if they thing your file is going to get approved, it usually does.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

There are lots of possible reasons, not enough credit, not long enough credit history, lack of savings, high debt ratios, use of finance companies, etc. As William said, there are a huge number of items that are reviewed. Sometimes simply improving your situation slightly can make a difference - or try another lender, some are more conservative than others. Good luck!

There is no one reason why an underwriter may deny your file. There are many different aspects that they look at. The best option would be to ask you lender exactly why you were denied.

Property and Income are the big ones for USDA. Of course there are many other reasons but you have to make sure the property is USDA eligible and that your income is below the income requirements.

The most common reason I see is a debt ratio over guidelines. The maximum home payment is supposed to be 29% or less of the household income, and the house plus all debt is supposed to be less than 41% of income. In the past, we could push those ratio's a bit, but I see those pushed ratios getting declined all the time now. Lending in MN, WI, and SD - www.JoeMetzler.com/usda