certificate with a usda loan

[Anonymous]

Hi: On Tuesday I signed a certificate for a home loan with the USDA 502 program. They said I have 30 days to buy or build a house and if I don't within those 30 days, I'll get 2 30 day extensions. But I have no idea where to go from here. They gave me a list of builders. Am I suppose to show this certificate to the potential builders if I go that route or if I want to buy a house already made.. this seems like a pretty stupid question  but I didn't expect to be approved with my low credit scores and now I feel I have to get a house within this time limit. Is the certificate an actual approval? Ha, I was so nervous my mouth was dry and I asked absolutely no questions!

 

[WannaHouse]

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@Anonymous wrote:

Hi: On Tuesday I signed a certificate for a home loan with the USDA 502 program. They said I have 30 days to buy or build a house and if I don't within those 30 days, I'll get 2 30 day extensions. But I have no idea where to go from here. They gave me a list of builders. Am I suppose to show this certificate to the potential builders if I go that route or if I want to buy a house already made.. this seems like a pretty stupid question  but I didn't expect to be approved with my low credit scores and now I feel I have to get a house within this time limit. Is the certificate an actual approval? Ha, I was so nervous my mouth was dry and I asked absolutely no questions!

 

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I would give them a call.

It sounds to me like you are good to go!! You are approved for a house and it should have the max amount you qualify for. I have no idea if you need to show your certificate, but my guess is yes. It would serve as a pre-approval.

[ShanetheMortgageMan]

The certificate you have received is basically a pre-approval, so you are free to go out home shopping now.  You want to mention to the builders/sellers that you have been pre-approved for a USDA loan and that is the type of financing you wish to use.  USDA new build requirements are pretty similar to FHA's.  So if they look at you kind of puzzled about USDA just mention it's similar to FHA new build requirements and that should "jog" their memory a bit.  If the builder is really unsure about USDA and FHA, then call up your USDA 502 Loan rep and ask for a list of new construction forms that are required in your state - they'll be able to give you the forms or a list of the form numbers (which you can then just google to find the form itself).