My wife and I have applied for a USDA loan through a mortgage broker in Oregon. My credit is a bit rough so I am not on the loan but my income IS being included. My wife has a fico score of 656 and has been pre-approved by the broker. After the broker sent our file to USDA, it was sent back for 22 missing documents, three of which we needed to provide and the rest the broker needed to provide. We have provided everything we were asked for.
My wife paid off all her old accounts earlier in the year and we are just worried about whether the USDA might deny our loan.
The broker has told us it was unlikely that we would be denied, but also that the USDA was being picky about which loans it approved. The mortgage company underwrote and approved the loan twice, but USDA still sent it back the first time. With the delays and and all the paperwork our broker apparently forgot to include in our file, we are wondering if they are just trying to push loans through, and if we might not have the credit, income, or some other factor that the underwriter would require.
Our file was submitted on Oct 6 missing one credit document which was submitted on Oct 12. We have been told to expect it to take 9 business days.
Is this a reasonable amount of time?
Is there a chance they will deny it? How much of a chance?
What should we expect?
Thank you for your input!
Just to correct you, if you aren't on the mortgage your income isn't included in qualifying for the mortgage, it's included in the eligibility determination as USDA requires that the entire household income (non-purchasing spouse, grandma, etc.) be at or less than the eligible limit. USDA doesn't approve or deny loans once the mortgage lender has already made their decision, USDA is just there to make sure all paperwork is in the file so they can issue their Guarantee. 9 business days for USDA to review is a bit long, on my last loan it was only 48 hours, but each USDA office has their own turntimes.