New Member
ruttster
Posts: 6
Registered: ‎08-19-2012
Re: USDA Direct Loan funding

After 3 months I finally got a reply saying I was selected for processing. I have to send in more paperwork (some of the same stuff they got 3 months ago). Hopefully an interview is coming soon! This is a long process.

New Member
kans43
Posts: 7
Registered: ‎09-27-2012
Re: USDA Direct Loan funding

Sorry for not responding sooner. Update on things I finally got the funding, and closed on my home a week before Thanksgiving. As far as any advice on the direct loans. You are doing the right thing olythurst2012 by researching the market. Also don't jump the gun...on putting in on a offer on a home just because you get a pre approval letter. I've seen alot of cases where people have done this...and funding not be there. Don't put in any offer until USDA LO gives the okay. Also once you get your actual funding contentment letter, and go ahead from your LO. The best advice I can give someone with little money.  Make offer on a home below the asking price. USDA will loan you the actual appraised value of the home. The difference can be used for repairs required by usda, closing, and upfront homeowners insurance cost. For example if the home is priced at 70K, and the appraised value is 75K. Lets say you offer sellers 65K you have 10K for closing repairs, and the required homeowners insurance for the first year.  Wishing you all the best of luck!!!

New Member
kans43
Posts: 7
Registered: ‎09-27-2012
Re: USDA Direct Loan funding
[ Edited ]

Yes ruttster it is a long process...I sent my first app in March 6 of 2012.

                                                            May of 2012  sent in all my paperwork.

                                                           July 2012 got my funding commitment

                                                           August 2012 made offer on home.

                                                           October 2012 got second funding commitment

                                                           November 2012 Closed on home.

 

In my case the USDA ran out of funds. The goverment fiscal year starts in Oct. Ending in Sept. I'm just thankful the sellers were willing to wait.

Member
olythurst2012
Posts: 5
Registered: ‎11-21-2012
Re: USDA Direct Loan funding

Thanks for the response and filling us/me in! Congrats on the new home too and best for the New Year! I appreciate all the advice you have. I'm still awaiting my loan commitment, and my file is still being reviewed (there were three applicants ahead of me to be reviewed, and it sounds like they have one staff working on this, she has been helpful to me as well). Being patient and just waiting to hear back. 

I did have to send some alternative credit references (cell phone, dental bil, cable company) as my credit is good but in the scope of homebuying is "young" I think... 

This is the year though and I'm hopeful, some of the homes I was looking at sold which I'm taking as a sign of things meant to be or not. The Direct loan is worth the waiting in the end though.

I'll post an update when I hear more for other folks going through this process. Thanks again for the words of wisdom and best to you!