New Contributor
Posts: 167
Registered: ‎12-04-2012
Re: USDA Funding
[ Edited ]

Direct is a lot different from Guaranteed.  The government actually lends the money in a direct loan, so the requirements are a lot more strict.  I have heard of funding issues with this, and I have heard a number of dates floating around as to when that will happen.  Unfortunately I can't tell you for certain.  I will say that direct loans are awesome if you qualify for them.  The terms and flexibility are fantastic. 


With a USDA guaranteed loan, the USDA RD program is essentially just insuring the loan in the event of a default, so there are no funding requirements.  I'm not sure if both types of loans are processed by the same group or not, but I would imagine that they are.


I'll do some digging and post any information I can come across.  In the meanwhile, who is your loan specialist?  Is this a contact with the USDA or someone at a bank?  If the latter, I would give the USDA office in your area a call to try and find out firsthand what is going on with funding.  Direct loans can be done entirely through their office as opposed to guaranteed which need to be underwritten separately by a bank before secondary approval goes to them.