USDA Guaranteed Loan Woes

[k0leslaw]

Hello All!
On 9/17 we put an offer in on a home after being pre approved by our bank for a RD loan. After a long month of waiting for the appraiser and the government to come back up, my loan officer was finally able to submit our paperwork to USDA on Friday 10/18 for final acceptance. Our close date is Nov 4th. I'm super worried we won't close on time. Any idea if RD was still accepting paperwork while shut down? I'm thinking if they have stacks of 2+ weeks of paperwork from the shutdown there's no way I'll see the November 4th close date :/

[Snickerdoodle24]

You are probably going to have to ask for an extension. No paperwork was accepted during the shutdown because the system that is used for sending apps in was offline so there was a TON of paperwork submitted last week when they reopened. We were submitted on 9/23 and had to ask for an extension during the shutdown and now we have to close by 11/20, we might make that if we are lucky!
I have heard that anyone not submitted before the shutdown is looking at a 2-3 month wait. Results vary by the state you live in of course.
Sorry I couldn't deliver better news!

[cocomadd]

There are 2 issues here.  First, the system GUS was still down as of Friday.  I was told by my loan officer that it may become available as of today, but that was not a definate.  The second issue is that the funds that were available for USDA are no longer available; congress is still trying to allocate the monies for FY14 (Oct, Nov, Dec); so if you get your file in and appoved it will be a "conditional commintment", which basically means they are approving you based on wether or not the money gets allocated.  if you are with a good bank and have good credit, the bank will take the risk and front the money util the conditional commitment clears, BUT if you are with a mortgage company...it may be a longer wait.  I am with the latter and I am sooooo frustrated because my house is suppose to close on Dec 20th...and I am not sure if I will have the file approved and ready ALSO I may have to submit the paperwork all over again if I decide to bite the bullet and go with a bank.  NOW to put icing on the cake I inadvertantly transfered too much money to my savings account and an automatic payment(I forgot about)came in, my banks overdraft protection kicked in, but I wonder if I have to start the process all over, if this snafu will hurt me with a bank application....Lord help me!!!!!!!!!

[k0leslaw]

I received an update from my LO today. She submitted my paperwork on Saturday, (10/19/13) and IT WAS APPROVED TODAY!!! I almost couldn't believe it as all of the horror stories I've been hearing on this site. I'm located in central Illinois (I'm sure location is a factor) Anyway I couldn't be happier! Looks like I'm going to be making my close date (11/4/13) after all!!!!!!

[cookiebird]

Wow that was fast!!!  Congrats!  My file was submitted on 9/24 and I am still in line. Probably another week.

[Lenchmob602]

You were approved through your bank or were you approved through your local USDA office too?

[k0leslaw]

Approved through my bank and USDA. My loan officer said we are clear to close 11/4 (pending termite inspection)

[Lenchmob602]

I'm in Arizona and I was approved 10/4/13 by the bank. I don't know if my file went to USDA yet but we are waiting on an approval. My closing date is 10/29/13, I still have no idea where its at right now. Congrats by the way

[BBallRain]

In Arizona  also.  According to my lender  the USDA has about a 10 day turnaround.  

[k0leslaw]

If I were you I'd be calling my loan officer daily. I'm sure I annoyed mine, but I kept reminding her of the looming close date ahead. Checking her progress made me feel better knowing something was getting done. Also, my LO told me there's a lender only site that tells them what day RD is working on. I assume that's state wide. I'd ask your LO about it. Goodluck!!