topic Re: The never-ending wait game with USDA. in Mortgage Loans

The never-ending wait game with USDA.

Anonymous — Mon, 07 Mar 2011 17:19:53 GMT

This is more of a venting of frustrations than anything.

Every aspect of going through USDA's direct program has been a long, painful struggle. Now we are finally at the very, very end of everything - appraisal is back, we renegotiated the price with the sellers, everyone is ready to go - but the person working on our file at USDA is now out of the office long-term for personal issues. Out of everyone's control, yes, but still frustrating. We had our loan orientation meeting almost 2 weeks ago and was told that we could be closing as soon as the 11th. It's the 7th now and we have no information. Now someone has to take over at the very last minute when funding at USDA is tight and we need to be placed on their funding list ASAP, yet everyone is out of the office today. We should have had a closing date set on Friday, but nobody could give me a clear answer because no one knows anything about our file. The lady who is taking over told me on Friday that she had no idea what was going on with our situation and she couldn't really tell me how they were going to handle this. *big, heavy sigh*

USDA is a great program that makes home ownership affordable to people who otherwise couldn't obtain a mortgage, but it requires a great deal of patience. We started this process in August and have encountered nothing but roadblock after roadblock. I always thought buying a home would be exciting and fun, but I'm literally drained and exhausted from every hoop we've had to jump through.

Re: The never-ending wait game with USDA.

0errant — Mon, 07 Mar 2011 19:31:59 GMT

Sorry this has been such a long and stressful process. Hopefully it will all work out for you soon, and then you'll be able to enjoy your new home

Re: The never-ending wait game with USDA.

ShanetheMortgageMan — Mon, 07 Mar 2011 19:51:24 GMT

I hear you, why can't they just assign it to your loan processor's co-worker? Seems simple enough. That person is probably just as busy as your processor is. Just have to understand it'll eventually happen. Also be happy that you aren't adding a 3.5% USDA fee on your mortgage balance (which is charged if you go the Guaranteed version), so look at it that way and you are savings quite a bit of money by going the Direct route.

Re: The never-ending wait game with USDA.

Anonymous — Mon, 07 Mar 2011 22:11:00 GMT

Thank you, 0errant!

Shane - this office is extremely overworked! I am definitely saving a lot of money by going the Direct loan route - my closing costs are only $343 vs. the $6700 it would have been if we did FHA - but the setbacks get a little discouraging. I know it will probably all be resolved by tomorrow, but we're so close to the end that I can't help but get a little impatient, hehe. Thank you!

Re: The never-ending wait game with USDA.

Anonymous — Tue, 08 Mar 2011 13:48:43 GMT

Niko - I feel your pain. We went under contract on our home Dec 1. with an original closing date of Dec 30. Since that time the limited funding they've been receiving has not made it to where I was on the list. Now I'm told that I'm finally first to receive funding for my state and we should have heard something yesterday or should today. I'm hoping for the best but expecting the worst after everything else I've gone through for this loan. I know that it's out of my LO's hands as much of our delays have had to do with government issues, it is just so frustrating.

Do you (or anyone) know the current status of USDA direct loan funding? Are funds currently available?

I'm crossing my finger that the money comes through soon since I'm 34 weeks pregnant and would like to be in our new home before the baby arrives. Good luck to you!

Re: The never-ending wait game with USDA.

Anonymous — Tue, 08 Mar 2011 15:40:40 GMT

wparker - The funding issue is probably the most frustrating part of this whole process! I called USDA Thursday and was told that they were 100% sure they would get funding on the 4th. I called today to see if anyone could tell me where I stood in this whole process, and the guy told me, "When we get this all sorted out, your name will be on this list for fund obligation, but you do realize we are out of funds, right?" Sooo.. I have no idea. Since Friday of last week, I've asked several different people the status of their funding, and no one can give me a clear answer. Very, very frustrating.

Re: The never-ending wait game with USDA.

Anonymous — Tue, 08 Mar 2011 15:41:36 GMT

wparker - I also forgot to add congratulations on the new baby, and I hope you find yourself in your new house very soon! So exciting!

Re: The never-ending wait game with USDA.

Anonymous — Tue, 08 Mar 2011 16:00:59 GMT

Hello,

I am also waiting for funding. I emailed USDA yesterday checking on the funding status and this is the response I got:

"Congress passed a two week extension on budget talks. That means it is not likely that we will receive our appropriations until that period is about to close, which is March 18th. It may be good to check back as we approach the 18th, if you do not hear from the Agency prior. "

I completely agree that this is a never-ending waiting game. I was warned ahead of time that it wasn't going to be a quick process but I really wish that there was more communication between the USDA and all of us waiting for the funding. The only thing that is keeping me sane is knowing that in the end I will own a house of my own and actually be able to afford it.

If anyone else knows anything about the funding situation please keep us posted!

Thanks,
Erin

Re: The never-ending wait game with USDA.

Anonymous — Wed, 09 Mar 2011 18:36:09 GMT

Niko - I defeinitely agree, its such a great program but the funding issues make it so stressful. I'm so lucky that my seller is so patient, especially since he has had other interest. Back in December I was told they would forsure have the funding in January. Then in January I was told that it would be March 7th/8th -- well I got the bad news call yesterday that funding did not come through for me. Needless to say I am absolutely heartbroken. Now my LO is telling me that we may receive funding on March 21. By this point I've learned to not get my hopes up. Maybe if I don't expect it, then it will come. Also, thank you for the congrats, it's a very exciting time and will be even more exciting when we are in our home. Let me know when you hear something, hopefully it will be soon for you!

Erin - Communication is scare and there really isn't much clear cut information out on the web either. These boards are where I get the most information. Good luck to you.

Re: The never-ending wait game with USDA.

Anonymous — Wed, 09 Mar 2011 21:36:21 GMT

I did receive confirmation yesterday that we are 1 of 2 people awaiting funding from our district office for the Direct program, so it's good to know that we are for sure "on the list." They did receive money on the 4th like they said they would, but I was told that went to salaries and people who were in dire need of housing. I was told that funding can come any day - it could come tomorrow, it might not be here til April. They simply do not know until the day they receive it. However, the lady who has taken over my file told me, word from word, that "We need money to keep going. If we do not receive funds within a week or two, we have to shut our offices down, and in the 15 years I've worked here that has never happened, so just remain optomistic!" I couldn't help but tell her that I stopped being optomistic back in December. Hopefully it's soon for all of us!

Re: The never-ending wait game with USDA.

Anonymous — Wed, 09 Mar 2011 21:50:18 GMT

I have been so frustrated with this loan and the USDA loan officer. We applied on September 1st, 2010 and they still haven’t send an Eligibility letter to us. We found a house we would love to put and offer, but our agent do not even want to do that until she knows when the funding will be available. Is this is how it is supposed to be? How any of you got through this process? Did you just put the offer on the house and explained the sellers that they have to wait for their money? I am so stressing about all this process - I really would love to take advantage of this loan but I am losing my patience!

Re: The never-ending wait game with USDA.

Anonymous — Thu, 10 Mar 2011 01:53:13 GMT

IP - this loan does require a lot of patience. My mother in law bought a house five years ago through this program. It took her 9 months from the date she applied until she closed on her house. We applied in August and had to terminate our first purchase agreement because USDA realized it was in a flood plain and didn't want to continue with the loan (this was after we spent $300 on a home inspection). So now we're on our second purchase agreement with a house we love, and the only thing holding us back is funding. The funding situation is only a part of the reason this process takes so long.. from beginning to end it's really just a game of waiting, waiting, and more waiting.

Before you even look at houses or get your heart set on one and you want to go USDA direct, you should apply. Don't even look at homes until you receive your eligibility letter, that way you know you're eligible and are able to put an offer in. Before we started this process in August, we fell in love with a home and thought we'd apply with USDA Direct and get an answer within a week. Well, that week came and went and the house was sold shortly after. I still drive by that house and want to cry.. I wish we didn't even look at it.

Re: The never-ending wait game with USDA.

Anonymous — Thu, 10 Mar 2011 01:55:17 GMT

IP - I meant to add that it's been over 6 months since you applied. I would call into the office to see what is going on. It took two months, I think, for us to receive the eligibility letter. 6 months is really long, even for USDA.

Re: The never-ending wait game with USDA.

Anonymous — Thu, 10 Mar 2011 13:17:08 GMT

Nikolasaur - Thanks for reply.

Yes, we called them 10 or more times plus emails. And we know that we are approved and even for how much (I have called area director and he let me know). Our loan officer claims that there is no money, so that why there is no rush and he said to be patient. I said I could be patient but at least let us know what is going on with our case and status. They are saying they have a letter issued to us, when we called a week ago, but also asking us for more papers ( like tax return for 2010, W-2s, my husband's employment verification, although he was the first name on the loan - you would assume they had to check it 7 month ago!).

So we are hoping to get this letter soon, but our agent does not want to even put an offer on the house until we know when is the funding will be available. Is this how it works with agents and offers?

Re: The never-ending wait game with USDA.

chasmith — Thu, 10 Mar 2011 13:25:09 GMT

The "no money" item is frustrating. One would think that in the current situation where there's no Federal Budget, a Continuing Resolution to spend at current levels would mean money is available, agencies hoard money to divert to their pet projects and self-protection vs. disbursing.

Re: The never-ending wait game with USDA.

Anonymous — Sun, 13 Mar 2011 14:30:58 GMT

I am also waiting on funds for rural dev. i am supposed to close on the 18th and no word on funds, im getting nervous as the sellers are getting very anxious.

i really wish there was a way to find out what is going on, seems noone knows anything about the status this is the only current forum i have found. (great by the way) please post with any updates as i will as well. Thanks.

Re: The never-ending wait game with USDA.

Anonymous — Sun, 13 Mar 2011 15:27:20 GMT

Can someone please, answer me this question: "can you put an offer on the house after you have recieved eligibility letter but do not know when the funds will be available?"

Re: The never-ending wait game with USDA.

Anonymous — Sun, 13 Mar 2011 18:37:18 GMT

IP - I'm not an expert by any means, so don't take my advice as 100% fact. However, in my own experiences, it all depends on how long the seller is willing to wait. You can put an offer on a house by all means, but the seller should be made aware from the start that your funding is through USDA Direct rural housing and that the closing date depends on when funds are available. The seller may not want to proceed with your offer because of the funding situation, or they may be more than willing to work with you and wait it out. So yes, you can place an offer (and you should!) on a house when you receive your certificate of eligibilty despite the funding situation.

Anothing difficult thing about this is that USDA doesn't even know when your loan will receive funding, so it's hard to give the seller even an idea of when the loan will close. My initial cosing date was February 28. I've extended it twice now, and I can only hope that I either receive funding my April 15 or that the seller is willing to extend yet again.

I hope this answers your question somewhat!

Re: The never-ending wait game with USDA.

Anonymous — Mon, 14 Mar 2011 00:45:35 GMT

Yes, thank you Nikolasaur

I have a feeling that our agent is not working with us on this. I am not sure.... I've just asked her if the sellers even aware that we exist and would love to put an offer on the house but waiting for the funding. Maybe they would want to see at least what we have to offer to them.

Re: The never-ending wait game with USDA.

Anonymous — Wed, 16 Mar 2011 15:37:04 GMT

Nikolasaur..Hang in there. I KNOW exactly how you feel!!! DH & I went through this experience last year when there were NO FUNDS available!!! It was a horrific nightmare. Countless times I wanted to give up and just say **bleep** it-it's not meant to be for us to have a home of our own!! We went through 2 different lenders also. The frustration and most of all aggravation was ALOT to bare! I cried, screamed and had a "few" glasses of wine to get through this but we did and it didn't last forever like it seemed...NOW that we're on the "other" side of the fence I can honestly say that it was all WELL worth it. They have such a heavy work load and seems like not enough people to work on files. We had a person who was working on our file also and left sick and never came back! Our file had to be put on someone else's desk , then to top it off, it was put at the bottom of their PILE---GRRRRR!!!!! We or should I say I had a massive fit when I was told that!!!!!!!!! We were at their mercy and had to wait--no other choice! Then we knew we'd evetually close but had to decide if we should move out and in with family for the time being or pay another months rent??? So anyway-----Hang in there...It'll work out