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usda loan without rent verification

I am midway through usda loan, I turned in all conditions ecept rent verification landlord lyed on, I sent LO past 12 month bank statments showing proof. How will this look to underwriter? Do I now have a major problem? Credit score above 640. by stawar_535_276 from Lady Lake, Florida. Mar 1st 2013 Reply


Andrew Alfonso (CashCow)
#1 ranked lender in Florida - 271 contributions

Dear Florida - From Florida - I live and work in Tampa and have all my life. Know this situation very well. It if falls apart -- Call me - I can make it work if they cant. My direct number is 800 813 3291 - Andrew Alfonso

Mar 1st 2013
Call: (800) 813-3291       Send a Message    Website
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,515 contributions

STRAIGHT FROM THE USDA GUIDEBOOK. Applicants with credit scores below 680 that currently pay rent/housing expenses must have a12 month payment history verification. Lenders may collect canceled checks or money order receipts to verify rent payments. Written verifications by independent management companies may be accepted in lieu of canceled checks. Written verification must include creditor name, date the rental agreement or contract began, monthly payment due, and payment history reported in 0x30, 0x60, 0x90 day format. Statements such as "satisfactory" or "acceptable" are not acceptable. Rent or mortgage payment histories reported on the credit report for present expenses are acceptable. www.MortgagesUnlimited.biz/USDA

Mar 1st 2013
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,917 contributions

Probably not an issue... the bank statements will take precedent over a letter from the land lord, and underwriters know how to read between the lines.. 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. 480-287-5714 WilliamAcres.com

Mar 1st 2013
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Last email was It is going to cause huge problems with loan... Im suppose to close in 20 days, already had apprasial,inspection,etc. Turned in all conditions asked from underwriter. but I paid rent cash/money order and have bank statments to prove same amount same day every month.

Mar 1st 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

I wouldn't think it will be an issue if you have proof, they might even go back to the landlord and ask why they apparently lied. Good luck

Mar 1st 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Always depends on the underwriter of course, and then it has to be reviewed and approved by USDA as well. With those loans I usually tell customers not to count 100% on the closing date until we have final approval from USDA - sometimes they get backlogged and it takes longer than expected. Let the process work out, normally these things work out for the best. Hope you get good news soon

Mar 1st 2013
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Rob Ziebart (rziebart)
#92 ranked lender in Florida - 6 contributions

I own a mortgage company with locations in Lady Lake and Ocala. I can help you with this. Give me a call. I can also get you the best rate and lowest closing costs if you'd like me to take your file over. It probably wouldn't cost you much time as we have 3 in house processors that just handle our USDA files and we move very quickly. Give me a call at 352-875-6907. Thanks, Rob Ziebart

Mar 1st 2013
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Rob Ziebart (rziebart)
#92 ranked lender in Florida - 6 contributions

I'm a USDA lender with offices in Lady Lake and Ocala. Give me a call on my cell phone. This is not a problem. I can take over your file and still close by your closing date. We have 3 in house USDA Processors that are second to none and move very quickly. Thanks. Rob Ziebart at 352-875-6907 cell or office 352-304-5700

Mar 1st 2013
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Peter Botros (PeterBotros)
#72 ranked lender in New York - 895 contributions

You should be fine. Best Of Luck!

Mar 1st 2013
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#137 ranked lender in Florida - 644 contributions

Not sure why the Landlord would lie, unless your overpaying and he is trying to keep you renting his place, other than that get landlord to correct the verification along with 12 months cancelled checks, money orders or cash withdrawals in the exact amount on time, you should be fine and maybe a letter of explanation on why the multiple ways of paying rent.

Mar 1st 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 394 contributions

If you can prove landlord lied he is committing fraud by lying on a Federal form. Perhaps if he knows this he will do the right thing and complete it accurately. Good luck to you. With your proof in the underwriter's hands it should be ok.

Mar 1st 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#28 ranked lender in New York - 2,236 contributions

If you have proof with bank statements you should be ok.Good Luck!

Mar 1st 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Cancelled checks, showing date that they cleared your bank, should work well, unless landlord held them on purpose, to make your history look bad.

Mar 1st 2013
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Rob Ziebart (rziebart)
#92 ranked lender in Florida - 6 contributions

Just call my cell phone through the weekend at 875-6907. I'll be in my Lady Lake office. USDA is currently at 2 weeks or less now so we can still get it done and if not get a small extension on your contract which is possible no matter what anybody tells you. I understand you don't have cancelled checks but this is still fine with several ways to go. Rob

Mar 1st 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Should not be a problem.

Mar 1st 2013
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Thanks for all the responses,they are sure asking for alot to go along with my bank statements showing rent payments, copy's of lease,etc,when lease is up? really. Im starting to think this will not fly and im being strung along here.Do they really concern themselves with when my current lease is up?

Mar 2nd 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 394 contributions

Regarding your follow up question, I would say there is a good deal of empathy for you by various employees of the lender, especially the loan officer who you presumably have a face to face relationship with. However the underwriter must separate themselves from the emotions of the transaction since they are obligated to ensure that the loans they approve meet the strict guidelines that (in this case USDA) have created and that these loans are able to to be sold. If they were to ignore something like a rental verification that doesn't meet these rules then they put their company at risk and and even their employment and career could be jeopardized. A good underwriter will suggest alternative methods of allowable documentation but their hands are tied if it won't meet the guidelines.

Mar 2nd 2013
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@ charlie thank you for the insight. Just very frustrating to not know if this can close or not.would an underwriter really care your in a lease?

Mar 2nd 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 394 contributions

I guarantee that your loan officer is equally frustrated. In our position we really get to know our clients and it is heartbreaking when there are delays that impact their lives. Underwriters do feel bad too but they have their own obligations as I said before. I do think with bank statements showing routine withdrawals of the same amount and on the same day every month an u/w should be able to work with that. Please post an update and let us all know how it goes.

Mar 2nd 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Charlie is giving you some great insight into your situation, I imagine the reason they are asking about your lease end date is how long you will have to continue making the payment in addition to your new mortgage payment. If things are tight for your approval that could be a consideration.

Mar 3rd 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Gharlie is giving you some great insight. FYI - I imagine the want to know how long you are obligated to continue making your rent payment. If you are tight at all in your approval, or the landlord (who has already shown they are not going to be cooperative) should happen to "go after you" for breaking the lease that could create a problem a few months or more down the road. Good luck with a messy situation. All too often these days there seems to be at least one or two issues that keep the mortgage approval from being "clean"

Mar 3rd 2013
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