Re: USDA Funding
01-25-2013 05:13 PM
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.
Thank you so much! That would be wonderful!
The loan specialist is the lady at our local USDA office. We were just talking about maybe we should just apply for guarenteed, but I'm a stay at home mom with a daughter with autism and my husband is a paramedic that works every moment that he isn't sleeping. I'm worried that if we go guarenteed, and we need the subsidy for whatever reason, we'd be under even more stress if we didn't have it. And we really qualify for direct, so it is a better program and if we qualify for it we should just wait it out...right?