A property is in the eligible section; however there is evidence of sinkhole activity. What are options for Rural Housing financing?
We understand that there are disclosure requirements by law. RD does not have a specific requirement regarding sinkholes. However, RD does an environment desk review on each property based on the information provided in the file. The Agency could require testing for sinkholes. It would be prudent to do the testing in advance. Please explain what is meant by debts six (6) months and older. The repayment ratio must include long term obligations include those obligations such as alimony, child support and other obligations with a remaining repayment period of more than 6 months and other shorter term debts that are considered to have a significant impact on repayment ability. A common misconception is that a longer term debt can be paid down to 6 months prior to closing and then it wouldnt count. Wrong! Example: A customer has with monthly income of $4,000.00 have ratios of 34-45 after a $400/month car payment is paid down to 6 months. The question begs, how will they survive the first 6
