Yesterday we were told our Certificate of Eligibility was being sent out, so I figured it's time to start a journal-type post for all those hunting for info. I spent a lot of time searching for timelines, so I hope someone else finds the following helpful. I'll come back to add updates as they occur.
*edit to correct ^
Right after we got the phone call that our Certificate would be mailed out on 3/26, our USDA loan specialist received word of a family emergency. She had to suddenly leave the office & took a week off work. We understood & waited patiently for her to return on 4/2 so we could drive an hour each way to pick up our paperwork & begin house shopping.
Our state is Virginia.
Submitted pre-qualification application via email 1/14/15
USDA did a single hard credit pull 1/23/15
Letter arrived & we were invited to apply 1/30/15
Submitted standard application via email 1/31/15
Letter arrived stating we were selected for processing 2/17/15
Mailed requested documents and payment for credit reports via USPS Priority w/ tracking 2/20/15
Documents arrived at USDA office 2/23/15
Tri-merge credit inquiry by USDA 3/10/15
$32 check to USDA for credit reports hit bank 3/17/15
Certificate of Eligibility issued 3/26/15
Under contract 4/15/15
Inspection completed 4/25/15 (only minor issues that the sellers will fix)
Survey completed 5/14/15 (a plot plan or survey is required by the USDA & the sellers, our realtor, our title agent, the town, & county couldn't find one on record anywhere, so we had to pay $300 & wait 2 weeks for this to be completed before we could submit our full application to the USDA)
Application submitted to USDA 5/14/15
Appraisal ordered by USDA 5/15/15 --Read the 1st half of our problems with scheduling our appraisal here. The 2nd half is posted in the comments below.
Appraisal performed on 6/23/15 -- Read about our strategy for an accurate appraisal here.
Appraised at $176,000
Insurance purchased, Truth in Lending signed, & GFE delivered on 6/30/2015
Commitment of funding on July 13, 2015
Added from the June 2015 closers post because much of this info is missing above:
After all of your helpful advice, tons of research, & a bit of stress, we finally got our letter to officially house hunt. We went under contract yesterday with a closing date of June 15th. The sellers are having a modular built for themselves & we're using USDA Direct, so the long time frame is beneficial to all involved. These will be the longest 2 months to get through!
Home Location: Virginia
Purchase Price: $174,900
Property type: Single family brick ranch 3 br/ 1 ba 1,767 sq. ft recently renovated with a 2 car garage on 1/2 acre. The roof is 2 years old & has a 35 year transferable warranty!
Lender Name: USDA
Notes about Lender: This is a loan directly from the USDA with no downpayment required
Type of Loan: Single Family 502 Direct / 33 year term
Approved on: The USDA issued our Certificate of Eligibility on March 26, 2015 but before mailing it, our LO had a family emergency & suddenly left the office for one full week. We drove an hour each way to pick up our letter in person the day she got back-- April 2, 2015.
Submitted Offer on: April 14, 2015
Ratified Contract on: April 15, 2015
Ernest Money Deposit: $500
Inspection: Passed with only minor issues on April 24, 2015
Purchase contract addendums: All minor issues from the insp. will be fixed by seller
Loan Rate: 3.0% 3.25% (Even though our Certificate of Eligibility states 3.0%, our rate won't lock until the loan obligates according to our state's office.)
Survey Ordered: April 30, 2015
Survey Completed: May 14, 2015
Application submitted: May 14th, 2015 (delayed due to USDA requiring a plot plan/survey that didn't seem to exist, so we had to order & pay $300 for a survey)
Loan Processing: The USDA doesn't communicate very well, so I'm not sure about this date.
Appraisal Ordered: May 15, 2015
Appraisal Completed: June 23, 2015
Mortgage Commitment Letter: July 13, 2015
Went to underwriting: No idea, but we went through full underwriting early in the process.
Underwriting Complete:
Final Approval: July 29th, 2015
Walk Through: July 30th, 2015
Closing Date: June 15, 2015 July 31, 2015 Read about me performing CPR on our new neighbor during move-in here.
Closing is set for June 15, 2015 & the USDA says this should be no problem. According to our USDA loan specialist, as of May 14, 2015, the USDA in Virginia has plenty of money remaining!
May 29, 2015 update- Our specialist ordered the appraisal 14 days ago on May 15th. Yesterday, (5/28) I got an email from our USDA specialist saying, "The request is with our contracting officer for payment authorization. When she cuts the check they will let me know." I called our specialist & she said this means they still haven't cut a check for the appraisal so it can be scheduled & performed. We're set to close in 17 days! What if there are repairs that require another visit by the appraiser? Will there be time for them to saunter back out to the house before closing? I'm pretty upset & want out of this apartment building with its hallway that smells like old man farts & cigarettes. Oh, how slowly the wheels turn with a government loan. It'll still be worth it in the end though.
June 22, 2015 update- The appraisal is finally happening tomorrow. The house is totally move-in ready, so if the appraiser starts nit-picking little stuff to be repaired, I may lose my mind. The sales contract has been extended to on or before July 31, 2015. Also, our a/c is broken & the landlord won't fix it. I don't feel like arguing it even though we could win because after 5 months of dealing with the USDA, I don't have the energy or desire to deal with this. It's easier to just sit in front of a fan & sweat. (update-- the house appraised for $176,000 & no further repairs are required)
You can also follow our progress & that of others on the June 2015 closers post.
For more information about the incredible options available from the USDA for low income households, start here to check eligibility, go here to read the Rural Development handbooks (3550 is the Direct loan, 3555 is the Guaranteed loan), & for thorough understanding, read the HUD master handbooks too!
