Why Is My Application For USDA Home Loans Louisiana Rejected?
by Vikram Kumar Digital marketing SEOThere are bunch of different reasons why
a home loan application can be denied. If you’re planning to apply for USDA
Home Loans Louisiana or in California, then getting to know the different ways
an application can be denied is a good idea. It helps you prepare for the
possible hindrances you’ll encounter with your application. Knowing them in
advance gives you ample time to improve upon your credit score and other
requirements.
What causes USDA applications to be denied?
To help you with your research and preparation on loan application rejection,
we’ve compiled a list for you. Here are the possible reasons why applications
get denied.
1.
Income
and debt issues – If you have debt issues such as an undisclosed debt, you
could have a hard time getting approval for your application. Unverifiable
income and a household income that exceeds the state AMI can also be reasons
for application denial.
2.
Credit
score change – While the USDA does not have a minimum credit score put in
place, loan lenders have. Lenders usually put a minimum credit score of 640. If
you have any financial activity that negatively affects your credit to the
point where it hits a lower score than the required minimum, that could cause a
problem.
3.
Change
in employment – A stable job or a dependable source of income is a major
requirement for getting an application approved. If you lost your job, or have
been laid off during the application process, lenders can count this as a
reason for denial. In accordance to USDA’s requirement that the applicant’s
household income must not exceed the state 115% of the state AMI, if you
changed your job and got a better paycheck that allows you to exceed that
limits, your application could also be denied.
4.
A
change in debt-to-income-ratio – Adding new debt to your account while also
having to pay for a home lone is not a good idea. Adding new lines of debt can
mean that you would have a hard time repaying the loan you took from the
lenders – another cause of application denial.
5.
Property
issues – You can only purchase homes within rural areas, as defined by the
requirements of USDA loans. The home purchased through USDA Home Loans
California application should also be used as the applicant’s primary
residence. Not adhering to those two can subject an application to be denied.
What do I
do if my USDA Loan was denied?
If you had your USDA Home Loans Louisiana denied, get in touch with your lender
about it. Ask them for the details as to why it was denied. There are some
cases when application that were denied with automatic underwriting were still
saved with manual underwriting. So, don’t lost hope. Your USDA Home Loans
California application can still get approved. However, if it was denied in
manual, talking to your loan officer about it is the best course of action that
you can do.
RESOURCE
To avoid having your USDA Home Loans
Louisiana denied,
have a chat with the people over at USDAHomeLoans. To know more about what to
do when your USDA Home Loans
California application
was denied, pay them a visit to help you with all your USDA home loans
inquiries.
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Created on Sep 12th 2021 23:43. Viewed 289 times.