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New Member
521tipton
Posts: 3
Registered: ‎06-09-2012
0

Re: USDA Direct Loan Process

Part of the delay was waiting on funding but the biggest problem was lack of staffing for the state office (Indiana) there are only 1 or 2 people processing applications for the whole state! We got our certificate sometime in June about 7 months from the start of the process. Then the appraisal came in lower then the seller was asking for the house (a NEW build). Ok with us though, but there was a further delay waiting on the builder to resubmit the new selling price. We finally closed on July 9th this year. Our builder was very nice he let us move in, in January and pay rent till we closed.

New Contributor
iamwhoiam
Posts: 88
Registered: ‎06-01-2011
0

Re: USDA Direct Loan Process

I haven't been back since closing 4/9/12!!

 

Fixinit2009-is any of that square footage in the basement? She insisted they would not overlook it either-but they would do a verification that I could afford it based on utility bills. I insisted that only living area counted, basements do not (even though some of it was finished). She insisted not. I insisted she double check. I was correct and she wasted 2 weeks of my time. Grrrr...

Established Member
Fixinit2009
Posts: 27
Registered: ‎04-23-2009
0

Re: USDA Direct Loan Process

I eventually let that house go.  Not because of the 47 square feet but because come to find out the property COULD be divided (at 2.8 acres) and USDA wont allow that.

 

NOW... I have found a house that falls below program limits in square footage as well as acrage, have had it inspected, and am currently waiting on completion of appraisal that they have ordered, AND signing of contracts.

 

Can you tell me what happens next?? Any more credit checks or pay verifications?


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New Visitor
STEVIE1023
Posts: 1
Registered: ‎01-22-2013
0

Re: USDA Direct Loan Process

I wish that I could give you some insight as to what to expect, but Im in the same boat. I applied for and direct loan about 2mths ago and Ive submitted every document that was requested of me. I waited about two weeks or so called just to make sure they had everything necessary to complete the app, and was told that there were some ppl ahead of me and they'd call me if they needed anything. The lady I spoke with sounded as though I was a bother to her and I dont want my persuing after the loan to be the determining factor as to if Im approved or not.    Aiken,SC

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: USDA Direct Loan Process

Seems like your lender isnt being very friendly. USDA is not a quick process majority of the time. Hang in there.
Good Luck
May all your dreams and wishes become a reality!
New Visitor
JenniElle
Posts: 1
Registered: ‎03-08-2013
0

Re: USDA Direct Loan Process

Wow. You all should count yourselves lucky with your USDA experience.

 

I am in Central MA, have been working with the USDA on a Direct Loan since March of 2011, and STILL have not closed on my property and it's now March 2012. I have had NOTHING but problems with the USDA office in Holden with my lovely mortgage representative who refuses to acknowledge or return a single phone call from me and I literally have to call six times a day and hope, by chance, he picks up his line (that you can't dial direclty, because he won't answer). 

 

I submitted my prequalification last March and I did not receive prequalification until May of 2011. By the time I received my prequalification, I was notified I had 30 days to submit all of the information to apply for the Direct Loan. Submitted all information within 3 weeks and was then notified, "sorry, funding is now put on hold" you can be put on a waitlist. 

 

Finally released funding in September, I get a call telling me I should have 'never been approved for prequalification because I have too much monthly debt'. Went over my monthly liabilities with them, and they had multiple student loans listed twice. You'd think they'd realize this when they were going over everything. So fast forward another 3 weeks with me getting copies of every statement from every debt past and current that I had so that they could complare. I get my approval amount just prior to Thanksgiving. 

 

Found a home the end of December. Submitted my offer the beginning of January, which was accepted and have been going back and fourth with the USDA and the attorneys since January. The sellers attorney now won't accept the USDA's letter of approval (with condiitions) post appraisal, because they clearly state that it's not a guarantee of loan funding. The seller's attorney is requiring that the USDA guarantee loan funding, which was supposed to be done by March 2 per the purchase and sales, and still has not been done. Of course, I cannot get a return call from the USDA representative to save my life.

 

When any of you have gotten this far, how long did it take from the appraisal for them to secure your funding and issue the notice of final approval for funding? The sellers need to replace the septic tank of the home I'm purchasing, which they have agreed to do upon notice of final mortgage approval, in order to sell the home. I agree with them 100% that they do not want to spend $3500 for this repair not knowing if the funding is 100% guaranteed because the notice of funds I received post appraisal states the appraisal amount and clearly notes that it is NOT a final approval.

 

Also, has anyone out there had the displeasure of dealing with the Holden, MA USDA office? I've already told my real estate agent that I am at my ropes end and if I can't get this straightened out by the initial close date of 3/27 I'm going to explore the option of the USDA Guaranteed Loan directly through a bank. I can't imagine that if you qualify for the Direct Loan you wouldn't qualify for the Guaranteed Loan. I also can't imagine that the process is NEARLY as difficult and frustrating working with a bank as it is with the USDA directly.

 

I can honestly say, with 100% conviction, I would never do it again through the USDA. It's just not worth the stress and being made to feel like a p.o.s. whenever you call their office and can't get anywhere with your mortgage representative. 

Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: USDA Direct Loan Process

Truthfully they prefer you to go the other route. Government programs are all hurting, if I had to take a wild guess eventually all these government programs will be non existent.

This is why qualifications are becoming stricter so you look at other options that are comparable.
Good Luck
May all your dreams and wishes become a reality!
New Visitor
barefoothappy
Posts: 2
Registered: ‎09-24-2014
0

Re: USDA Direct Loan Process

Thank you everyone for sharing your experiences with USDA. I notice there haven't been any posts for a long while, but hopefully someone will see this anyhow. We're in Wisconsin.

 

My husband & I applied for a USDA Direct Loan on 8/18/14. They requested a couple of documents on 9/10/14, nothing major. Then we were told that it was all forwarded onto the Loan Specialist. What does that mean? I emailed the Loan Technician who told me this to ask, but she never answered. I emailed her later to ask where it all was in the process. No answer. I emailed the only Loan Specialist for our side of the state, and she told me that it is being decided now who will take our file. She will let me know who does when she knows. That was a week ago today.  Apparently, the USDA program is being revamped or something after 13 years, and they are changing who handles what files. This is very frustrating. How long will it take them to figure this out? Has anyone heard anything about this? Is there a place we can find out just what the process is for getting a USDA Direct Loan? No one will tell us anything from USDA, but I read all these random things online about interviews and other things that need to be done.

 

We have a large family (9) and are in a very small house right now. We were told we could probably get around the square foot limits because of that, but if they are changing the rules, I wonder if that will change as well. Anyhow, this has been ample opportunity to practice patience. I just wish I knew who had our file and what they are doing with it. It's like pulling teeth to get information out of these people. I called again yesterday and was told "I'll call you back after I research this". They never seem to!

New Visitor
inghumble
Posts: 2
Registered: ‎11-15-2014
0

Re: USDA Direct Loan Process

Yes.  I went to the USDA Texas homepage and they had an article about new applicants being processed at the Central offices for better faster service.  

 

I unfortunately am one of the last few that are still being handled by my regional office.  After receiving my Certificate at beginning of Sept., I finally found a home according to their standards signed contract on home on October 27th.  I had already gathered my other needed paperwork (tax info, existing survey, etc) to fax with contract.  I called the office for the fax number and found out that my Loan Officer was out of town for the whole week and next Monday.  I was promised that someone would be handling my loan but they just sat on it until LO came back on Nov 4th.  

 

In the meantime, I got my home and termite inspection completed and sent it in on Nov. 3rd.  After going back and forth on needed repairs pre-closing with LO, I was able to negotiate amendment with seller and had a signed copy to LO by Nov. 6th.  I just found out that the appraisal was done on Nov 10th from seller's agent, but LO is saying they do not have the appraisal back and the appraiser has until Nov 19th to have appraisal back.  

 

This is very nerve-wrecking since my contract states I need to have an ok on approval by Nov. 21st.  They are saying that money is still available which I don't doubt sinc e this is a new fiscal year.

 

 


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