Our USDA Direct Loan Process - Kentucky

[07DuramaxLBZ4x4]

We started the USDA direct loan process around the middle of June.  On June 20th I submitted our application.  The USDA has sent out employment and residential verification.  My employer has mailed the verification form back and I assume our property manager has done the same.  

What is the next step that we will do in the direct loan process?

What is the average time between the starting of the direct loan application to the closing of the house assuming we find a house as soon as we are approved?

Approx. how long does it take to determine how much we are qualified for, what interest rate we will have, and if we qualify for the subsidy? 

What is the mount of land that the USDA will approve for property?

$29,000 anuual household income

Household of 3

Looking for property in Madison County

740 credit score

[ShanetheMortgageMan]

There are others who are going through the USDA Direct process but not as many are who are getting regular mortgages, so I've found that a lot of questions get minimal responses.  I'd recommend you search other posts with timelines on the USDA Direct process.   Here were a few I found for you that contain quite a bit of detail:

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-Loan-Process/td-p/1248937

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-Rural-Loan-502-Direct-for-very-low-or-low...

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-after-BK-here-s-my-story/td-p/2718059

I thought I read somewhere that on the Direct program 1 acre max, I could be wrong though.  It may also vary depending on the state you are in.  These posts may help:

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-FHA-acreage-limits/td-p/998162

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-Subsidy/td-p/2836135

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-property-waivers/td-p/2891466

[DanTheMan77]

I have already posted answers to many of your questions in this thread, which Shane linked to as well:

http://ficoforums.myfico.com/t5/Mortgage-Loans/USDA-Direct-after-BK-here-s-my-story/td-p/2718059

Expect to get a phone call and/or letter from the local USDA office once your application has been reviewed. Some people only get a letter, but I got a phone call followed by a letter. At this point they will tell you if (and this is a very big IF) finding is available. They will also tell you how much you were approved for, what the interest rate is (probably 3.75%), and if you qualify for the subsidy, what the subsidized interest rate will be.

USDA doesn't give a specific # of acres that they will approve or deny. The requirement is that the land can't be further subdivided based on local zoning laws. So, if the zoning states that the minimum lot size is one acre, they will approve up to 1.999 acres (since anything greater than or equal to two acres could be subdivivded).

Expect 30 days from the time you apply until you get an approval/denial. Once you have find your home and have a sales contract, expect 45-60 days until closing. Some people have had to wait 3-6 months for funding to become available. In reality, the entire process can take anywhere from 60 days to 6+ months.