New construction usda direct

daisyday22 · ‎04-19-2014

Hello all,
So I submitted my full application on 3/03/14 but had to switch counties on 3/26. I was told by the first office that reviewed my info that everything looked good before they passed it on... the 2nd office then told me they'd need an ADDITIONAL 30-45 days to process. Of course, I was bummed because I'm ready now

In the meantime I was looking at houses and I finally decided building new would be my best option. I went ahead and signed a contract with a builder who is familiar with the USDA process. On 4/16 I forwarded that contract to the USDA office and today I received a Good Faith Estimate and a Truth in Lending statement. So I guess I bypassed the certificate of eligibility bc I already had a contract?
My question is, nobody from the office has contacted me yet so I don't know what goes on from here. There isn't a lot of info in regards to new construction either. If anyone has had a similar situation I'd greatly appreciate any information! Thank you.

rideswithchrist1 · ‎04-28-2014

Familiar with USDA does not mean they know what the USDA Direct is... even my realtor does not fully understand even though she has said she has done these before.

My office said new builds take lots of time.

Because you got the GFE- that means you are approved and they are working on your loan. BUT you need to contact that office and make sure they fund your loan (won't happen until after an appraisal and I don't know how they appraise a house that isn;t built yet.

Getting those documents (you signed and returned right?) Does not mean you are FUNDED or that they have funding to give you! Each office does it differently. Mine does not give you the Cert of Elig. until they have money to cover your loan.

Touch base with them and ask about the new build process, and seach this forum. I can't be too much help we are under contract with an already built home.

But- since you got that already, it looks like things are moving fast! Is this a ready to go house, or you wait for the build out?

daisyday22 · ‎04-28-2014

Well the builder called the usda office for me, apparently they still have to review my file for official approval. She said they have to send out the GFE when they get a contract. This past Saturday was 30 days that the new office has had my completed application.
No, this is a house I'm having built from the ground up. The builder was kind of confused too on the process and I still can't find a whole lot of info regarding building with Direct. I know it can be done so I'm keeping my fingers crossed it goes smoothly.

rideswithchrist1 · ‎05-01-2014

I ask lots of questions. Since I have an agent, I say "my agents was talking about ____ and I wanted to get more info". I email and call about 1-2 times per week just to keep us fresh in their mind!

I would ask when to expect the funds to be allocated in your name so you can let the builder know and go from there. They will let you know if you are approved or not. Also, that should give you a close date and stuff.

I am new to this and hope to close on the 23rd!