Can the USDA loan approval be based on the contingent to the selling of a borrowers existing home?
Yes. In addition, RD has provisions that allow customers to retain their present home if their employment relocates them in from outside the local commuting area. A new lease will not be counted in income but any outstanding payments must be including in the ratios. They are not eligible if they own a suitable decent, safe, sanitary home in the local commuting area. They may retain the local property if it is functionally inadequate or is not decent, safe, or sanitary. Income from a 1-yr signed leave where a security deposit and first months rent has been collected, can be included in income after using a 25% reduction for potential vacancy.
