Rodney E.

Warning a USDA RD Direct mortgage is a joke! The problem is there is absolutely no guidelines for processing the loan unlike the USDA RD mortgage. The problem for me started after the inspection yes I was looking at an older home with a solid dry concrete foundation and basement. The inspector found two major issues that needed to be addressed plumbing and electrical. The problem with plumbing was resolved by the owner who was required to remove the galvanized pipe (all the pipe) and they replace all pipe and fixtures. The electrical work was bid on by a contractor and was to replace and bury the feeder line to the home and replace an outdated fuse box. The fuse box was not capable of being brought to code since it was incapable of supporting Arc Fault Interrupts and GFI's.

Now the problem USDA ordered an appraisal which came in at bid price. I was not allowed to see the appraisal, despite request, and immediately called for a review and lost. In the meantime my US Senator's office managed to get me a copy of the appraisal. What I found was that USDA RD did not even get the specifics of the home correct. They also failed to consider the repairs and any value added by replacing the entire plumbing system and electrical system. USDA RD took the position that these repairs were nothing but maintenance and add no value to the home; contrary to the clear guidelines for a USDA RD mortgage. I appealed the appraisal to ALJ and won. The court sent the case back to USDA who then sat on it for two months and would not give either my realtor or me any information as to what was going on. Due to their actions; the seller after being patient for seven months lost faith and dropped out of the deal; since, both me and my realtor had no idea what they were doing. I was forced to spend $800 for the inspection and about the same in fuel costs trying to get a bid from a contractor. The problem is the word is out on these loans much like VA loans and contractors are refusing to bid on these loans. The reason is they are nothing more than a waste of time for them since they rarely ever get the work. Most contractors simply refused to bid or even consider; others would not bid for less than $1,000. I wasted seven plus months spent almost $2k and ended up with no home.