1st Florida Lending Corp., a registered Mortgage Lender
Orlando servicing only the State of Florida, offering over
48 loans programs including Conventional Loans, Non-
Conforming Loans, FHA Loans, VA Loans, USDA Loan,
Self-Employed Loans, Bank Statement Loans, No-Doc
Loans, Reverse Mortgage Loans, ITIN Loans, Rental
Investment Loans, to name a few and specializing in
Bank Statement Loans or “stated loans” requiring no Tax
Return verification and much more. * No broker or
lender fees are for FHA,VA, USDA and Conventional
loan types
Main Office: 2151 Consulate Dr. * Suite 8 * Orlando,
FL., 32837 * Telephone * (800)856-7097 * (800) 655-
1345 * (407) 300-2558 * Fax (877) 401-9955
* Disclaimer: All Loan programs, rates and terms can
change without notice and are subject to credit and
underwriting approval. Loan charts highlight min/max
constraints, assumptions & random scenarios only. We will
always work hard to approve your loan but there are no
guarantees of any kind expressed or implied that any loan
we be approved. Licensed in Florida Only. When Banks
Say No ! We Say YES ! ® is a registered trademark owned
by 1st Florida Lending Corp. Florida lender license #
MLD106.
© 2007 - 2023 1st Florida Lending Corp. - All rights reserved
USDA HOME LOANS
TURNED DOWN BY A LENDER? CALL US!
Florida’s Top Rated Mortgage Lender
A+ BBB RATED I 48 loan programs
Struggling to understand why your
USDA loan was denied? Let's shed
some light on the common reasons
behind it and what steps you can take
to remedy the situation.
1. Income and Debt Concerns: Your income
and debt play a pivotal role in loan approval.
Issues like unverifiable income or undisclosed
debt can raise red flags. Similarly, exceeding
household income limits for your area can
lead to denial. Our USDA loan specialist can
provide clarity on your financial standing and
potential solutions.
2. Employment Changes: If you've
experienced job loss or switched jobs during
the application process, it could signal
instability to lenders. USDA loans require a
steady income source, so significant
employment changes may impact eligibility.
Conversely, a substantial increase in income
might disqualify you due to maximum income
thresholds.
3. Credit Score Fluctuations: Meeting the
initial credit score requirement of 620 is just
the start. Subsequent changes in your credit
profile, such as collections, new lines of credit,
or negative impacts, can jeopardize your
application.
4. Debt-to-Income Ratio Shifts: Acquiring new
debt, like furniture or loans, during the loan
process can hinder approval. Any increase in
debt can alter your debt-to-income ratio,
affecting your eligibility.
5. Property Eligibility: USDA loans are
restricted to qualified rural areas. Ensure the
property you're eyeing meets USDA eligibility
criteria. Consulting a loan specialist early in
your homebuying journey can prevent
disappointments later.
6. Appraisal Issues: Property appraisal is a
crucial step. Apart from determining the
property's value, appraisers check for basic
livability and condition standards. If the
property fails to meet requirements or the
appraised value is lower than expected, it can
stall the loan process.
7. Interest Rate Changes: A rise in interest
rates post-preapproval can impact affordability
ratios, potentially affecting your loan approval.
What to do if your USDA Loan is Denied?
What to do if your USDA Loan is
Denied?
Explore Manual Underwriting: If your loan
was denied in automated underwriting with a
620-credit score, manual underwriting could
offer another chance and allows for approval
with a lower credit score of 580. At 1st
Florida Lending, we offer manual
underwriting, which may involve stricter
guidelines and additional documentation.
Address Issues: Understand the reasons for
denial and take proactive steps to address
them. This might involve improving your credit
score, reducing debt, or seeking alternative
properties.
Seek Guidance: Your loan officer can provide
valuable insights into improving your situation.
Whether it's finding a different property or
exploring alternative loan options, their
expertise can guide you toward
homeownership success.
Don't let a loan denial deter your
homeownership dreams. By understanding
the reasons behind it and taking appropriate
actions, let us help you navigate the path to
securing a USDA loan by exploring other
viable options.
Never assume that you do not qualify for a
USDA Home Loan. Instead, contact the
experts at 1st Florida Lending. Our
certified loan agents will quickly identify
your needs, and offer you the type of
expert advice you deserve