I applied for a 502 direct loan from USDA ..Iam soooo nervous!

[WannaHouse]

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@medicgrrl wrote:

Actually it sounds like the Direct program. There are companies out there that will assist buyers with applying for USDA loans.

As far as qualifying for the loan, I have read the USDA manual several times and was in the mortgage industry for over 15 years.  USDA is not a black & white program.  They are there to benefit the consumer and the government so when both can be benefited at the same time they are more likely to do the loan, even with some credit issues.

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I have also read the manual several times as well as reading everything I find on USDA loans. I am in the process of the Guaranteed loan myself.

With the Direct, even tho we qualified income wise, we were told to wait a year because we had to pay a tax lien of $300. Once it was paid, then we had to wait a full year before we could appy. 

So,IMO, you either qualify or your don't.

[msnabs]

Well guys,

I got antsy and called the USDA office today. Apparently the person working on my file was out until next Tuesday (this is the same person that told me that I would have an answer back by the end of last week. I make too much for the Direct program, ( don't know how that works).The other worker was very nice and told me that I may come out better doing the Guaranteed loan. I am just bummed, but atleast my credit scores are good TU 711 EQ 648 EX 636. Guess I will just have to muster the energy to go through this again with the Guaranteed Program. Wish me luck!!

[flintlockjo]

Sorry the Direct Loan didn't work out for you msnabs. Hopefully the other one will. I am still waitng to hear. I finally had to fax a new copy of my BFs authorization in. they said that was all they were waiting for. ( I had already sent the first one back in March, I guess it got lost in a mail black hole) lol

[msnabs]

Hey Flint,

Ah, the "black hole" , lol. I wish you luck. I applied with Wells Fargo online. I hope to hear something really soon. Keep your fingers crossed

[flintlockjo]

msnabs, my fingers are crossed for you! Should be a bit quicker this time I would think.

[WannaHouse]

The guaranteed program is not tough at all! We are almost to closing now using it! (April 30)

Good Luck!

[ponderous]

I found my house on March 21 and signed yesterday going with the USDA Guaranteed Loan.  I had all my ducks in a row, was more then ready and from start to finish there has not been one single glitch or hang up.  It is an amazing program.  They received my paperwork late on a Monday and had an answer to my LO on Thursday of that week with a quote from my LO that my file was "amazingly clean".  All in all, less then 30 days from start to finish with using a government program is amazing!  I took $5.04 to the closing table, negotiated $8000 paid closing costs by the seller and based on my appraisal have already made $17,000.

Have all your documents ready, be able to jump if they need anything and I will keep my fingers crossed for you that it goes as well as it did for me!

[msnabs]

Well guys I was pre-approved yesterday for 100K!!!!! I am soooo excited. I went looking at houses today, ran into some minor snags (the houses were'nt as cute in person), but I am on my way. I have $5k so far saved, mid score was 646 (hoping to pay down some CC's to get a quick boost). My lease ends June 30th, so I am getting the ball rooling ASAP. I have all my docs together, and will just keep the bank statements as they come in. Still want you guys to keep your fingers crossed and Congrats to you Ponderous. I hope to be giving the same Kudos to this program in a few weeks!!!! 

[Anonymous]

Hi MSNABS,

I was wondering if its not to much to ask, since you were qualified for 100K, how much did you make approximately either per year or per month?

Please reply and thank you in advance.

[Clover04750]

I'm currently waiting for USDA to process my loan. The bank sent it out today. As a USDA direct buyer in Rockingham county, I am telling you to be very careful about 2 things -

1. Your appraisal amount
I paid $400 for my appraisal on 4-10 and it took about a month to complete, at which point the underwriter asked for a review appraisal, which was completed yesterday. My closing date was 5-30, which now has to be lengthened to make time for the two weeks we expect usda to process it.
It's pretty common for rural areas to have a problem with comps aka surrounding comparable houses. If a comp house was sold as-is, as a foreclosure, or estate it complicates using it as a comp. my house is in a subdivision and we still had problems with comps and the percentage number of adjustments.
When you find the one, talk to your agent/lender about the possible issue with comps so that your underwriter hopefully won't derp around and contest your first appraisal like mine did.

2. The time required for USDA to process vs closing date
I wish I had asked for a longer closing date! My lender told me to have everything done by May 8th, so that the loan could be processed. Before that time, all required inspections were done. However, because of the appraisal taking so long, the loan just went to processing today. Since the seller does have a backup offer, they may not grant the additional week or two needed to process the loan through USDA. I've spent a grand and owe almost a grand in home related inspections, which means I'm at the mercy of the seller to allow me additional time or else I lose this $2,000 and the house. The house's research is of no use to me if I can't own the home, but the inspectors, surveyed, and attorney want to be paid regardless of that.

I read online that USDA can take 60-75 days to return the processing, but their website says apps on the 15th are being processed today and should take 7-10 business days. I'm holding my breath and I cannot wait for this entire situation to be done with! My best advice to you is to get the longest closing date possible and have your loan completed and submitted to USDA as early as possible. Be aware that the appraisal will most definitely take longer through USDA standards. Keep in mind that anything the government touches gets screwed up and dragged out by barely competent federal workers. And they say welfare "recipients" are the money suckers...

I don't understand how USDA has to be the very last part of a closing process. I understand that they need the inspection, but they should be responsible for timely processing. Why not, it could cost me two grand?!

PS, my home inspection could not be covered by the loan because if it were, every single thing would have to be documented as fixed before the loan would be processed through USDA. With this in mind, try to get the cheapest licensed home inspector you can find, they're general inspectors and you may be stuck paying for it even with the seller paying all closing costs.