USDA Direct Loan: Questions on Approval, U/W, and Closing

[Anonymous]

Hi! I've been reading other threads on the USDA for a while and it's really helped me sort through the mud that is a government loan.....

I was approved for $160k (plus $1200/yr tax and insurance each) in mid-June. I'm currently a day into my first extension. My scores are mid to high 600's and my income was about $500 under the limit.

I have a signed offer and accepted counter for a lovely home, but have not sent it in to USDA yet because the rep told me the first step is an appraisal. The house is being renovated and won't be complete for another two weeks so I don't want to order the appraisal until maybe mid-next week.

Does anyone know how long the appraisal takes from the day you submit to them your offer? I know each office may differ, but I'm trying to move through the process as quick as possible and order it when the reno is about a week from completion.....

Also, I am entering my first year of college this fall (oldest freshman ever!) and had to take out a small student loan (one subsidized and one not) to pay for the fall and spring semester. I currently have an older student loan open that I pay every month. I am able to defer those payments while I'm in school again, but opt not to. Will they check my credit before closing and possible deny me based on the new student loan??

What's next after the appraisal? And what is the time frame from submitting the offer to actually closing? I've seen so many stories running the gamut from horrible to awesome....

And I'm paying my closing costs - seller would not. Has anyone had to do this with the USDA loan? How much can I expect to pay out of my pocket at closing? I also paid the $500 earnest.

I appreciate any insight I can get - thanks!!

[Anonymous]

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@Anonymous wrote:

Hi! I've been reading other threads on the USDA for a while and it's really helped me sort through the mud that is a government loan.....

I was approved for $160k (plus $1200/yr tax and insurance each) in mid-June. I'm currently a day into my first extension. My scores are mid to high 600's and my income was about $500 under the limit.

I have a signed offer and accepted counter for a lovely home, but have not sent it in to USDA yet because the rep told me the first step is an appraisal. The house is being renovated and won't be complete for another two weeks so I don't want to order the appraisal until maybe mid-next week.

Does anyone know how long the appraisal takes from the day you submit to them your offer? I know each office may differ, but I'm trying to move through the process as quick as possible and order it when the reno is about a week from completion..... Our appraisal took 5 weeks from when it was first requested for our loan. The handbook states it should occur within 7 days of the request, but our USDA area specialist said their office uses only 2 appraisers. Each of them was swamped & from what the specialist said, the appraisers have 15 days to either accept or reject the order, depending upon how busy they are. Click the link in my signature below, read about the hell I'm going through, and GET ALL PAPERWORK IN ASAP. You can't assume yours will go quickly.

Also, I am entering my first year of college this fall (oldest freshman ever!) and had to take out a small student loan (one subsidized and one not) to pay for the fall and spring semester. I currently have an older student loan open that I pay every month. I am able to defer those payments while I'm in school again, but opt not to. Will they check my credit before closing and possible deny me based on the new student loan?? It's a very real possibility, but I never got another credit check after the hard pull. However, our loan is still in the (hopefully) final days right now, so it could come any day.

What's next after the appraisal? And what is the time frame from submitting the offer to actually closing? I've seen so many stories running the gamut from horrible to awesome.... I'm on day 105 under contract in Virginia.

And I'm paying my closing costs - seller would not. Has anyone had to do this with the USDA loan? How much can I expect to pay out of my pocket at closing? I also paid the $500 earnest. We're paying our own as well. I don't have an exact number yet, but they've estimated close to $6,000.

I appreciate any insight I can get - thanks!!

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[Anonymous]

So, LeavingTheCity, did you receive a Good Faith Estimate for your closing costs? Or anything detailing how much you'd need to bring to closing? If so, at what point in your timeline did you receive it? Thanks!

[Anonymous]

The GFE I got from the USDA contained only estimates, since our closing attorney needed to put their own numbers in. Just about 10 minutes ago, our attorney called & said we'd need to bring $939.09 for closing costs. Closing on the last day of the month helped lower that number a bit.