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USDA Direct Loan

Established Member

USDA Direct Loan

Hi all, I recently applied for the USDA Direct Loan and am wondering if anyone can tell me where I am in the process and what hurdles I might have left. I passed the preapproval application, submitted my full application, received my truth in lending statement, and received notification that a full credit report had been ran after submitting my fee payment (using myfico's Score Watch) I'm wondering what the next steps are. My fico scores are: 620(EQ) and 622 (TU), not sure about EXP. Can anyone tell me what is next? Thanks so much!

19 REPLIES
Super Contributor

Re: USDA Direct Loan

When doing the USDA Direct version you'll have a loan specialist at USDA who is your primary point of contact.  They'll have (or should have) detailed knowledge about your loan process and where you are in within it.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Established Member

Re: USDA Direct Loan

Thanks Shane.  I figured that would be the case, however, can not get my specialist to return my calls.  It's getting quite frustrating.  Smiley Sad

 

I've never once heard her voice since I started the process.  I know she's busy but I'd really like to know more about the program.

Super Contributor

Re: USDA Direct Loan

Do you have an email address for your loan/area specialist?  I've found that it's easier getting USDA employees to communicate via email than waiting for return phone calls.  If you don't have an email address, call up your USDA location and ask whoever picks up the phone for an email address.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Established Member

Re: USDA Direct Loan

Good suggestion.  I will try that.  I like email better anyways!  Smiley Happy

Valued Member

Re: USDA Direct Loan

Hello!

 

I am in the USDA Direct Loan process as well. We handed in our full application on August 26th and didn't receive our approval certificate until about two weeks ago. I would say right now you're just waiting to hear if you're approved or not. If you don't hear anything from them, call them, even if you have to leave a voicemail. I didn't hear anything back for a month and called them, and come to find out our USDA lady sent the wrong papers to our student loan company and she was about to call of our whole loan process because she sent in the wrong forms to the student loan company but never contacted me about it. I fixed it within a day, and a couple weeks later we received our approval letter. I found that I have to be in constant contact with my USDA loan officer because there is so much involved in this process. I seem to be on the phone with her almost every day. 

 

I hope you hear something soon! Good luck to you!

Established Member

Re: USDA Direct Loan

Thanks Niko. Sounds like you had some hurdles but I'm glad everything turned out well for you! I finally got into cotact with my loan specialist today and unfortunately, she couldn't tell me much as my "file had not made it to her desk yet.". My question is, if that's the case why was her named signed to the form that requested my check for a credit check and now that I know my credit check has been conducted - who does have my file? All she could tell me was that she would call me when she received the file. I know I should be more patient but it's tough being on pins and needles as I'm sure you know. My other concern is that other than sending my tax return forms, they habentbrequested pay stubs or anything - my salary has gone up 11,000 since last year. Hopefully they have some other way they verify this.

Established Member

Re: USDA Direct Loan

I'm feeling a bit bad for being upset with my loan specialist because she called me today and I *am/should* be approved.  She said everything looked good on her end, she just has to verify my status with my landlord.  She said that once she receives information back from him, I should received my certificate of eligibility within a couple of weeks.  I could not be more excited, but I am still worried that something will fall through.  

 

I've lived in my current rental for 6 months and paid on-time every month.  I was with my previous landlord for about a year and had only one late payment.  Should I be ok? Does anyone know what questions they ask of the landlords?  

 

Also, I'm assuming that a certificate of eligibility means that we'd be in the clear and have the go head to make a offer on a house?  I was too excited to ask exactly what that meant and I've come up with all these questions after the USDA office had already closed.  

 

Say a prayer for me and hope everything continues to go through smoothly.  Smiley Happy  I appreciate everyone's feedback!

 

 

Valued Member

Re: USDA Direct Loan

That's great to hear! Smiley Happy

 

Your certificate of eligibility is basically your approval letter. It will tell you what amount you're approved for and the amounts allowed for yearly taxes and insurance. It also tells you the date it expires, which *I believe* is 45 days from the day your receive your letter. I could be wrong, it could be 30 days. Anyway, that means you have that amount of time to find a house, enter into a purchase agreement, and I believe you may need to get your home inspection and appraisal done in that time as well (again, I could very well be wrong on this). So once you receive that letter, you should move as fast as you can to get an offer in on a house! Smiley Happy

 

As far as the landlord thing, I'm not exactly sure what kind of information they request from your landlord. If you have been an excellent tenant as you say, I wouldn't sweat it one bit. They are probably just confirming that you actually do live there and your name is on the lease, and you pay your rent on time.

 

Good luck again! Smiley Happy

Established Member

Re: USDA Direct Loan

Just wanted to update on where I am in the process and maybe get a couple of questions answered. 

 

I've been approved, my offer on a home has been accepted and the appraisal is scheduled for tomorrow.  I believe I have to go to a formal meeting with my USDA Loan Officer.  After that I will continue on with the inspections. 

 

Right now what I'm worried about is that in my last phone conversation with USDA she told me that there are currently no funds available as the new budget for FY11 has yet to be approved.  She seems confident that if it is not approved and given in December that it certainly will be in January.  Does anyone know what this means and how likely is it to happen in January at the latest?  Also - is there any chance that they just won't get the funds?  I hate to sound negative but just want to prepare myself for the worst. 

 

Any info would be greatly appreciated!