A rant about USDA home loans

I am tired and have been at this for a year. I am stumbling through this situation and have learned and gleaned some things about this process but I would appreciate any input or education.

My rant is only speaking for myself, in rural upper midwestish USA.

The USDA (guaranteed) loan, other than no down payment, is seeming like nothing but a complete detriment to my ability to find a house.

How are other people in rural USA in the current real estate climate managing to successfully make offers and purchase houses with the USDA Direct or Guaranteed loan when there are so many other people out there with cash or conventional loans fighting for the same scraps?

For the sake of simplicity I am going to only be referring to the USDA Guaranteed loan which is funded by a normal lender but backed by the USDA. (I have zero clue how anyone could ever find a house, at least in my area, with the Direct loan especially since they seem more inflexible due to being funded directly by the USDA)

Anyways, USDA loans do not get preferential treatment among sellers, partly because USDA loans don’t allow you to waive absolutely everything, right? Which conventional buyers are able to do and are doing.

USDA loan also only works in places with barely any houses for sale.

Even if you are right on the edge of an eligible rural area and right across that border is 100000 more houses for sale in a more active area, nope. No dice. You gotta stay where there is 12 houses for sale built in 1865 at the end of the American Civil War and haven’t been maintained.

A USDA Loan is helpful if you have a less than ideal credit score and no down payment available, but unless you can afford a payment for a house over 130k, which I can’t, almost every place I could afford wouldn’t pass USDA inspection, and even if it would pass inspection and everything is great about it people with conventional loans are making offers higher than me and being chosen for their ability to just waive everything.

Unless the government/USDA incentivizes sellers to sell the relatively few properties that are ever for sale in eligible rural areas to people utilizing USDA loans, I don’t get how this is anything more than a way to torture and bait poor people into having hope and then crushing them, over and over and over.

Unless I am missing something.

Thank you.

submitted by /u/BadAtMakeup
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I am tired and have been at this for a year. I am stumbling through this situation and have learned and gleaned some things about this process but I would appreciate any input or education. My rant is only speaking for myself, in rural upper midwestish USA. The USDA (guaranteed) loan, other than no down payment, is seeming like nothing but a complete detriment to my ability to find a house. How are other people in rural USA in the current real estate climate managing to successfully make offers and purchase houses with the USDA Direct or Guaranteed loan when there are so many other people out there with cash or conventional loans fighting for the same scraps? For the sake of simplicity I am going to only be referring to the USDA Guaranteed loan which is funded by a normal lender but backed by the USDA. (I have zero clue how anyone could ever find a house, at least in my area, with the Direct loan especially since they seem more inflexible due to being funded directly by the USDA) Anyways, USDA loans do not get preferential treatment among sellers, partly because USDA loans don’t allow you to waive absolutely everything, right? Which conventional buyers are able to do and are doing. USDA loan also only works in places with barely any houses for sale. Even if you are right on the edge of an eligible rural area and right across that border is 100000 more houses for sale in a more active area, nope. No dice. You gotta stay where there is 12 houses for sale built in 1865 at the end of the American Civil War and haven’t been maintained. A USDA Loan is helpful if you have a less than ideal credit score and no down payment available, but unless you can afford a payment for a house over 130k, which I can’t, almost every place I could afford wouldn’t pass USDA inspection, and even if it would pass inspection and everything is great about it people with conventional loans are making offers higher than me and being chosen for their ability to just waive everything. Unless the government/USDA incentivizes sellers to sell the relatively few properties that are ever for sale in eligible rural areas to people utilizing USDA loans, I don’t get how this is anything more than a way to torture and bait poor people into having hope and then crushing them, over and over and over. Unless I am missing something. Thank you. submitted by /u/BadAtMakeup [link] [comments]

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