Buying or Selling a Home/USDA-RD Loan; sell?

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Expert: - 9/29/2008


Question
In 2006 I built my first home in the city.  The builder has a finance person who obtained my loan from USDA-RD and a local bank.  Although I have only lived in the house for 2 years I find myself wanting to move to the country.  I recently learned that my USDA-RD loan does not give actual pay-off amounts only estimates (b/c they assist monthly with payments so they charge a recapture fee at end).  With USDA-RD estimated payoff and regular banks payoff a realtor I'm in contact with estimates a loss of $3,000 to $8,000.  What are my choices as of now?  Should I try to get out of the USDA-RD loan and refinance elsewhere?  Should I ask USDA-RD for no loan assistance so I can minimize there re-capture fee?

Answer
Dear Emily;
It is always difficult to speak in general terms to a question of your sort.  I don't know any of the specifics and cannot review a contract to know what you have agreed to.  In addition, I don't do any business with USDA-RD so I can't speak to their agreements and pay-off contracts.  Perhaps showing the papers that you signed to the real estate agent there will give you some of the answers.  The other thing to do is to discuss this with someone from USDA-RD to explain what you want to do and find out what your options are.  I would say that no loan assistance would be best, but right now there may be some real obstacles in even obtaining another loan.  If you visit a local lender and discuss your options and see if you qualify for a traditional loan you will know better how to proceed.

Good luck and best wishes.

~Jessica Bryan

Buying or Selling a Home

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Jessica Bryan

Expertise

buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.

Experience

Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.

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