When in the process are funds "reserved" for a USDA loan?

[Anonymous]

With all that's going on with USDA funding...I'm pretty worried.  This is our first purchase and we have a "loan approval" from the underwritter, but now have to send the file off to USDA. My lender is supposed to do this today, 4/22 - maybe tomorrow.  My questions is this:  When are the funds "reserved"?  When USDA first receives our application, or after it is approved?  I live in California and I've heard it takes 8-10 business days to process the loan - at this point, each day counts.  We are really cutting it close here and USDA is our only option because we don't have any money left for a down payment.  Thanks!

[Anonymous]

Good question. We are in the exact same place as you. We live in WI. I would like to know as well. My mortgage broker says we should be fine but you can't help but worry when you're so close! 

[Anonymous]

kimmyk - sorry that you're in the same boat as us...not a fun place to be!  I've heard there is a bill going to Congress today.  As I understand it, there will be changes to USDA but it shouldn't affect home buyers, but don't quote me.  Hopefully the bill will pass and the program will stay alive.  But in the meantime, I need our loan to get funded by USDA, or we won't be buying a house, period!  Good luck to you!