UPDATE - USDA made me pay off ALL IRS debt before approving guarantee - FINALLY CTC

[Anonymous]

Hello everyone. We are currently in the final stages of escrow, scheduled to close 07/27. 

On Friday we were told our file would be sent to the USDA office for a final review and to receive commitment from them. 

Once received we'll be issued our CTC.

LO has advised us that our file is solid and that there should be no issues...still can't help but to feel nervous. 

Just wanted to know if anyone has ever heard of or experienced a declination from USDA even after lender has approved? 

[gdale6]

Sure they can decline to underwrite it, after all they are guaranteeing the loan to the lender. As to how often it happens i am not up on. If the lender says its solid then I would take their word at 99.9%

[Anonymous]

Thank you for the reassurance. File was submitted today. Hoping to hear back soon.

[Anonymous]

I was in your shoes! My file was submitted to USDA on the 10th. It came back today clear to close!!! They didn’t ask a single thing. You can follow what day they are on and they just looked at the 10th today so mine flew through USDA came back same day they looked at my file! Praying yours is as easy!!

[Anonymous]

Wow congratulations, that’s so great!
May I ask what state you’re in and how you were able to track your file?
Thank you! 🙂

[Anonymous]

Thank you! I am in Alabama! And if you google USDA loan Alabama (your state here) you should find your local state site. On the page for USDA guarantee loans there will be an alert with whIch day they are on along with an email to use that you simply type “turn times” in the subject line and it’s an automatic reply.

I found the email to be more up to date than the alert on the website. I wore that email address out lol.

[Anonymous]

Attention Lenders: Current turn time is 1-2 business days for GUS ACCEPT submissions and 2-3 business days for REFER and manual underwrite submissions.

This is all it says. I am not seeing exact dates or an email address.

☹️

[Anonymous]

That’s great news that means they are in a 24-48 hour turn around the email is only if they are running behind you should hear in no time!

[homeloanexpert]

Processing time greatly differ from state to state. Some states have a hotline with a recorded message that gives the current processing times. while others post them on their websites. Some states are fast, and there are others that are super busy and really slow. So, I always tell my borrowers please call and stay up on their turn times because they can change at any time (specially before an offer is made).

Files submitted with a GUS Approval/Eligible are fast as the file is faxed or emailed by the Underwriter with a skeleton file. Which generally contain the loan app and the apprasial. On the other hand, a file with GUS findings with a Refer/Eligible can take longer as the USDA will underwrite the file itself and if approved, then wthey will issue the loan commitment. There are many reasons why a file gets downgraded to a manually underwritten loan. But I'll address that another day.

If your LO gave you the thumbs up, then sleep like a baby! Just be patient and know we lenders never send a file to the USDA for commitment unless we are CTC (clear to close). Once the commitment comes in better get ready to move!

Best wishes to you and congratulations on your new home.

[Anonymous]

Thank you for the information. You guys are awesome!